The rogue trader blamed for huge losses at a French bank may have pushed the US Federal Reserve into its unprecedented rate cut this week.
It is thought Société Générale's high-volume sales of tainted investments at the start of the week, when global stock markets were in turmoil, helped set the stage for the Fed's emergency cut.
The bank said it discovered the illegal activities last weekend and by Monday was selling off those positions before revealing the fraud.
A 31-year-old trader at France's second biggest bank caused it to lose almost €5bn.
The whereabouts of the man, named as Jérome Kerviel, are unknown.
The US Fed cited 'a weakening of the economic outlook and increasing downside risks to growth' in justifying its surprise rate cut.
Police in France are meanwhile conducting a widening criminal investigation into what is one of the biggest banking frauds in history.
Markets recovering after US pact
European stock markets continued their recovery this morning after strong gains in Asia and US markets after political leaders last night agreed a plan to boost the US economy.
Earlier, Japanese share prices closed up 4%.
The $150bn economic stimulus proposed by President George W Bush was accepted by Congressional leaders yesterday evening.
The deal provides for tax rebates of up to $600 for individuals and $1,200 for married couples along with tax breaks for business investment.
Mr Bush welcomed the development and Speaker of the House Nancy Pelosi said the initiative was aimed at benefiting working people.
The hope is that the package will help calm fears of a US recession and encourage consumer and business spending to boost economic growth.
The legislation is intended to work in tandem with action by the Federal Reserve, which cut a key interest rate by three-quarters of a percentage point last Tuesday.
