Trader in court to pay back 5bn euro
(24 June 2010 – Europe) Jerome Kerviel could be in debt for the rest of his life if the French investment bank Societe Generale is successful in their pursuit to have the rouge trader re-pay the near €5 billion (A$7.05 billion) he lost through unauthorised trades.
Mr Kerviel lost his job at the French investment bank when it was revealed in 2008 that he had exceeded his authorised dealing and the ceiling of the entire desk by 400 times , taking total positions of €50 billion.
After the bank launched an investigation into the excessive trading it was revealed that the bank suffered losses of €4.9 billion, which SocGen now wants returned.
The investment bank’s lawyer, Jean Veil, has launched a suit for compensation that would effectively leave Mr Kerviel in debt for the rest of his life.
Mr Veil said that while it is obvious that Mr Kerviel, who is now employed by a computer software company, won't pay this amount, the bank could have also have demanded damages as well as compensation.
Mr Kerviel claims that his superiors were aware of what he was doing and that they not only allowed him to continue but encouraged him.
The French press have noted that the investment bank was demanding the compensation to highlight its claim to the public that they were indeed victims after Mr Kerviel’s claims were made.
Accused of lying and falsifying documents to hide his trades, he is on trial before the Paris Criminal Court on charges of breach of trust, computer abuse and forgery.
He faces a maximum sentence of five years in jail and a fine of €375,000 if found guilty.
After the bank launched an investigation into the excessive trading it was revealed that the bank suffered losses of €4.9 billion, which SocGen now wants returned.
The investment bank’s lawyer, Jean Veil, has launched a suit for compensation that would effectively leave Mr Kerviel in debt for the rest of his life.
Mr Veil said that while it is obvious that Mr Kerviel, who is now employed by a computer software company, won't pay this amount, the bank could have also have demanded damages as well as compensation.
Mr Kerviel claims that his superiors were aware of what he was doing and that they not only allowed him to continue but encouraged him.
The French press have noted that the investment bank was demanding the compensation to highlight its claim to the public that they were indeed victims after Mr Kerviel’s claims were made.
Accused of lying and falsifying documents to hide his trades, he is on trial before the Paris Criminal Court on charges of breach of trust, computer abuse and forgery.
He faces a maximum sentence of five years in jail and a fine of €375,000 if found guilty.
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