Sunday, 27 July 2014
Last updated 2 days ago
Oct 5 2010 | 2:01pm ET
Jérôme Kerviel, the rogue Société Générale trader who cooked up a phony hedge fund client to hide his €50 billion fraud, is going to jail.
Kerviel was sentenced to five years in prison—with two years suspended—following his conviction on forgery, computer abuse and breach of trust charges. He was also order to repay all €4.9 billion that SocGen lost on his unauthorized trades. According to French reports, at his current salary of €27,600 per year, it will take Kerviel more than 177,000 years to make good on that part of his sentence.
Kerviel's lawyer, Olivier Metzner, plans to appeal the decision.
The 33-year-old fraudster did not deny his crimes, but said that his unauthorized trading was no secret to his superiors, making them partially responsible. Kerviel testified that he was shocked at how easily he hid the trades, in one case telling a SocGen broker that a rugby-loving hedge fund trader named "Matt" was pushing him to make the risky trades.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…