Saturday, 20 September 2014
Last updated 18 hours 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.