Posted on 10/05/2010 5:18:36 PM PDT by 1rudeboy
PARIS — Ex-trader Jerome Kerviel was convicted on all counts today in history's biggest rogue trading scandal, sentenced to at least three years in prison and ordered to pay his former employer damages of €4.9 billion ($6.7 billion) — a sum so staggering it drew gasps in the courtroom.
The court rejected defense arguments that the 33-year-old trader was a scapegoat for a financial system gone haywire with greed and the pursuit of profit at any cost — a decision sure to take some pressure off the beleaguered banking system overall.
By ordering a tough sentence for a lone trader, the ruling marked a startling departure from the general atmosphere of hostility and suspicion about big banks in an era of financial turmoil. It was a huge victory for Kerviel's former employer Societe Generale SA, France's second-biggest bank, which long had a reputation for cutting-edge financial engineering and has put in place tougher risk controls since the scandal broke in 2008.
Kerviel maintained that the bank and his bosses tolerated his massive risk-taking as long as it made money — a claim the bank strongly denied.
"I have the feeling Jerome Kerviel is paying for an entire system," said Olivier Metzner, Kerviel's lawyer, noting that his client hadn't benefited financially from the fraud.
(Excerpt) Read more at oregonlive.com ...
Are they going to garnish his wages when he gets out of prison? I hope he never has to add alimony to his monthly “nut.”
By the way, how much money does the french government lose every year?
Who pays for their damages?
Before freepers go off halfcocked on this subject.. let me be very clear... there is irrefutable evidence that Jerome Kerviel was used as a scapegoat by the senior management of Societe, and the senior management went so far as to use the scapegoat to increase their pillaging of the French public through lobbyists to have the public cover the trading losses caused by Jerome Kerviel immediate bosses during Jerome Kerviel time of employment.
I know little of this case, but that sounds plausible.
Maybe he can just take out a home equity line of credit to cover it...
6.7 billion? No prob.Will ya take $20 a month?
After dear leader and Turbo Tim pump up the dollar he can pay it back in no time at all!
Ex-trader Jerome Kerviel was convicted on all counts today in history's biggest rogue trading scandal, sentenced to at least three years in prison and ordered to pay his former employer damages of €4.9 billion ($6.7 billion) -- a sum so staggering it drew gasps in the courtroom.
Six billion dollar Frenchman. That’s gotta hurt.
This is the first I’ve read of this “fraud”. It appears politically manipulated to me. I wish the guy good luck if he didn’t gain financially from his “fraud” as his lawyer states. He apparently owes one “H” of a lot of money he doesn’t have.
$6.7 billion? Do they accept credit cards? Will they take a check?
With that kind of notoriety the boy will be a hit on Dancing With the Stars!
No sweat. He’ll be able to pay it off within 6 months once hyperinflation hits.
“No sweat. He’ll be able to pay it off within 6 months once hyperinflation hits.”
By that time, he’ll be worth a quadrillion, but he’s still going to owe several octillion/s;)
Anyways, bottom line. He messed up. However, he was allowed to mess up by his bosses, his department, and the institution he worked for. It was quite common (and still is) for certain people doing certain functions (traders in particular) to be given a very LOOOOONG rope as long as they are making money. To meet target quanta, management often looks the other way as long as money is being made. When the inverse occurs, suddenly someone is a 'rogue trader' etc etc etc.
Fact is, in most modern financial institutions, an individual cannot do a lot of 'out there' stuff without a LOT of people being aware. Jerome did mess up, but Societe Generale messed up FAR more. The lucky thing for SG is that the courts bought their story, and now Jerome goes to jail (and gets a fine that hangs around his neck like some darn millstone) and all SG got was Government financial assistance.
I am in the PE field, thus I will not bite (one of the) hands that feeds me, but just know this - the game is rigged. Always has been, always will be. What is funny is so many people who think it is not. It doesn't mean one can't play and win (it is possible, and with a good head and NO EMOTION, very probable to win, and win big), however those who subscribe to certain 'funny beliefs' are simply suckers.
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