June 9, 2010 |
Is Jerome Kerviel, the young trader who lost billions of dollars for France's Societe Generale bank, a criminal? Or merely the product of a system that encouraged risky bets when the market was at its hottest — and helped create the subsequent global meltdown? Kerviel, 33, went on trial Tuesday on charges of forgery, breach of trust and unauthorized use of a computer. If found guilty, he could serve five years in prison and be fined $450,000. His former employer, a civil party to the criminal case, is asking for $6.6 billion — the amount Kerviel's bets lost before Societe Generale shut him down in January 2008.
May 28, 2008 |
French bank Societe Generale fired an assistant to former trader Jerome Kerviel after a report indicated that Kerviel may have had assistance in amassing $78 billion in unauthorized futures positions. Thomas Mougard, 23, was fired for "professional misconduct," his lawyer said. Without naming Mougard, Societe Generale said in a report last week that as many as 15% of Kerviel's questionable trades were registered by his assistant.
May 24, 2008 |
Investigators at Societe Generale said Friday that they suspected a former futures trader had help as he tried to cover up unauthorized positions that led to billions of dollars in losses at the French bank. In two long-awaited reports, the investigators said the bank's management failures and culture of risk-taking were partly to blame for failing to uncover the alleged fraud, which led to a loss of more than $7 billion. "The trader's hierarchy, constituting the first level of control, proved deficient in the supervision of his activities," the board of directors said in a statement to shareholders that accompanied the reports.
March 19, 2008 |
Jerome Kerviel, the Frenchman blamed by his company for the world's biggest rogue trading scandal, left jail Tuesday after winning a legal battle against detention. Kerviel, 31, walked free from the Sante prison in Paris after five weeks in custody while investigators continue to probe heavy losses at French bank Societe Generale. Under the terms of his conditional release, there are strict limits on his movements and contacts. Societe Generale unveiled 4.9 billion euros ($7.64 billion)
March 13, 2008 |
Police arrested another employee of French bank Societe Generale on Wednesday as they investigated the world's biggest rogue trading scandal. The arrest came as a U.S.-based law firm said it had filed a class-action lawsuit against SocGen, alleging the French bank misled investors about its exposure in the sub-prime mortgage markets and failed to act on information about trades by Jerome Kerviel. In January, SocGen unveiled 4.9 billion euros ($7.53 billion) of losses which it blamed on rogue deals carried out by Kerviel, 31, a junior trader at the bank.
February 7, 2008 |
The Securities and Exchange Commission is examining whether French bank Societe Generale broke U.S. laws while unwinding and revealing 4.9 billion euros ($7.2 billion) in losses allegedly incurred by a trader's unauthorized bets, the Financial Times reported. The inquiry, which is in a preliminary stage, may find that the matter is best left to French authorities because the incident doesn't primarily involve the U.S., the newspaper said, citing unidentified people familiar with the matter.