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Head of France's BPCE bank 'probed over conflict of interest'

Judicial investigation into 2009 appointment of Francois Perol, who was President Sarkozy's economics adviser, as chairman of merged bank.

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The chairman of BPCE, France's second-biggest retail bank, was put under judicial investigation to determine if his nomination to head the group in 2009 represented a conflict of interest, a legal source told Reuters on Thursday, reports Reuters.

Francois Perol, who was nominated by then President Nicolas Sarkozy, had previously worked at the investment company Rothschild & Cie, which played a key role in the merger that placed BPCE group in second place after Credit Agricole Group.

Perol, 50, appeared in a closed Paris courtroom on Thursday to answer questions from an investigative magistrate.

BPCE declined to comment immediately on the hearing.

Read more of this report from Reuters.