Although futures trader Jerome Kerviel has been singled out for gambling $73 billion of the bank's money using fraudulent positions, he has claimed that he is being used as a scapegoat by Soc Gen.
Now French newspaper Le Monde reports that another trader has been taken into custody and is being questioned about the trades that led to Soc Gen's losses as well as his relationship with Mr Kerviel.
Societe Generale itself claims to believe that Mr Kerviel acted alone, but police apparently suspect that the second trader was aware of the transactions.
It is reported that the trader works at Societe Generale affiliate, Newedge, and was brought in after police searched company offices.
A message was allegedly sent to Mr Kerviel on November 30th 2007 from the second trader reading: "You have done nothing illegal in terms of the law."
Preliminary charges of forgery, breach of trust and unauthorized computer activity have been filed against Mr Kerviel while the police probe continues.