Police raid rogue trader's Paris home

Paris: French police visited the Paris home of an alleged rogue trader accused of a $7.2 billion bank fraud.

Trader Jerome Keruviel has been suspended and will be dismissed, said Bank Societe Generale, who lost billions due to Keruviel's bogus trading.

Witnesses said that four officers went into the apartment building where Kuruviel lives, in the suburb of Neuilly-sur Seine on Friday.

The Paris prosecutor's office has begun investigations into the case. The fraud is the largest-ever by an individual in the securities business.

France's President Nicolas Sarkozy said on Friday that the scandal did not affect the "solidity and reliability of France's financial system."

Societe Generale said that Kurviel made "fraudulent" trading in European index futures that were beyond his permitted limits, then created false transactions to cover his tracks.

The bank said it has taken a financial hit as a result of exposure to the subprime mortgage market in the United States and is selling $8 billion to raise capital.