Kerviel claims bank tolerated his risky deals

Jérôme Kerviel, the alleged multibillion-dollar rogue trader, has claimed he
was being made a scapegoat by his superiors at
Société Générale (SocGen)
who had ‘tolerated’ his risky deals as long as they made money.

Kerviel’s lawyers claimed victory yesterday when Kerviel was freed on
preliminary charges of abuse of confidence and illegal access to computers,
escaping the more serious charge of fraud. ‘He is free and he has been cleared
of the charge of fraud, which has been repeatedly emphasised by the Société
Générale bank, Christian Charriere-Bournasel, Kerviel’s lawyer, said.

Several shareholders have filed complaints with the French financial markets
watchdog after it was discovered that a member of SocGen’s board had sold shares
worth €86m (?64m) on Jan 9, shortly before the scandal broke.

Kerviel claims SocGen brought the disastrous situation on itself by hastily
selling his positions last week when they discovered the scale of his trades. At
that time he held positions worth about £37 billion, more than the market value
of the bank.

Further reading:

French trader accused of hacking systems

Investigation at SocGen ‘to take months’

full story in The Daily Telegraph

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