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Rogue trader ordered to repay $6.7 billion.

rafterman

A sadder and a wiser man
Feb 15, 2004
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Plus five year prison sentence with two years suspended.

Ha ha ha.....good luck with that.

Kerviel must repay $6.7-billion
GREG KELLER
05:12 EST Tuesday, Oct 05, 2010

Paris — A Paris court ordered former Société Générale SA trader Jerome Kerviel on Tuesday to pay the bank a mind-numbing €4.9-billion ($6.7-billion) for his role in one of history's biggest trading frauds and sentenced him to three years in prison.

The ruling marked a huge victory for Société Générale, one of France's most blue-blooded banks, which has worked to clean up its image and put in place tougher risk controls since the scandal broke in 2008.

The 33-year-old former futures index trader stood expressionless as the court convicted him of all charges and pronounced a five-year sentence with two years suspended.

Mr. Kerviel was found guilty on charges of forgery, breach of trust and unauthorized computer use for covering up bets worth nearly €50-billion between late 2007 and early 2008.

In a stunning blow, the court also ordered Mr. Kerviel to pay the bank back the €4.9-billion that it lost unwinding his complex positions in January, 2008 – a punishment he would almost certainly be unable to pay. While trading for the bank, he took home a salary and bonus of less than €100,000, or about $155,700 – a relatively modest sum in the financial world.

Outside the courtroom, defence lawyer Olivier Metzner said Mr. Kerviel would appeal. Mr. Kerviel will remain free pending the appeal.

“He is disgusted,” Mr. Metzner said of Mr. Kerviel's feeling about the ruling, adding that the court had judged that the bank “was responsible for nothing, not responsible for the creature that it had created.”

Mr. Kerviel, a soft-spoken and debonair man from western Brittany, has garnered considerable public appeal in France for his image of being a scapegoat for powerful corporate interests. Mr. Kerviel maintained that the bank and his bosses tolerated his massive risk-taking as long as it made money, which he did at first.

“I have the feeling Jerome Kerviel is paying for an entire system,” said Mr. Metzner, saying his client hadn't benefited financially from the fraud.

“I hope you all will donate a euro to Jerome Kerviel,” the lawyer told TV cameras and reporters.

During the proceedings, both sides admitted to mistakes but Mr. Kerviel insisted his bank superiors knew what he was doing. Société Générale 's former chairman acknowledged there were problems in monitoring the trader's work.

The bank says Mr. Kerviel made bets of up to €50-billion – more than the bank's total market value – on futures contracts on three European equity indices, though his net position appeared unremarkable because he balanced his real trades with fictitious transactions. The bank says his actions cost it €4.9-billion.

Still, an internal report by the bank found managers failed to follow up on 74 different alarms about Mr. Kerviel's activities.

Employed by Société Générale since 2000, Mr. Kerviel worked his way up from a supporting role in an office that monitors trades to a job on the futures desk where he invested the bank's money by hedging on European equity market indices.

He was arrested in January, 2008, and held for six weeks in Paris' notorious La Sante prison. Since being fired from Société Générale, Mr. Kerviel has worked as a computer consultant.
 

danmand

Well-known member
Nov 28, 2003
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How much is he going to earn making licence plates in prison?
 
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