Jerome Kerviel Crushes Bank Societe Generale (Part4)

http://st0ckman.blogspot.com
http://st0ckman.blogspot.com/search/label/%24t0ckman%27s%20Pre-Market
this will cost cost the group 4.9 billion euros ($7.16 billion) and announced plans to raise 5.5 billion euros through a capital increase to shore up its balance sheet, also reeling from a crisis in global credit markets.

The fraud disclosure brought back memories of Nick Leeson, the British trader who in 1995 brought down blue-blooded merchant bank Barings after racking up huge losses.

SocGen said it was in the process of dismissing the Paris-based trader, who it did not name, and added that the trader's managers would leave the company.

It added that its board had rejected an offer by Chairman and Chief Executive Daniel Bouton to resign.

SocGen shares were suspended.

The Bank of France announced an inquiry by the Banking Commission and said no further comment was necessary after Societe Generale took steps to strengthen its balance sheet.

French Economy Minister Christine Lagarde will make a statement during the day on the issue, her office said.

"The most serious thing is that this puts into doubt the risk management systems at some banks," said Fortis analyst Carlos Garcia.

A source at SocGen said the trader was "not one of its stars" and was relatively young. SocGen said the trader had been handling plain vanilla futures contracts on European stock market indices, betting on broad share market movements.

It was not immediately clear what role French police were taking in the investigation. The French prosecutor's office was not available for comment.

FURTHER WRITEDOWNS AT SOCGEN

Analysts said the episode would have a major impact on the reputation of SocGen, which was founded in 1864 and is one of France's most prestigious blue-chip companies. Jerome Kerviel on the run!

Category:

News & Politics

Tags:

• Jerome
• kerviel
• rogue
• trader
• Societe
• Generale
• nick
• leeson
• pre
• market
• movers
• stock
• trading
• day
• trade
• swing

[TYX91101]

He's likely a scapegoat or patsy in this case. Even the phrase rogue trader is a carefully constructed disinformation tactic. All this guy did was follow the trend - unfortunately, the trend changed.

[st0ckman]

i agree. i mentioned this the day the story broke on my blog, link in top right corner of this page. he has very light charges brought against him.

[swifts1968]

Rogue trader or ROGUE SYSTEM ?

[st0ckman]

rogue system and rogue trader

[divinacomedias]

The trades and volumes thereof along with sources of investments must be analyzed, to determine who bought and sold what when.

Without that, the affair won't have much light shed on it.

Also, some expert IT forensics should analyze the system to see if this Kerviel trading system hack is even true.

[st0ckman]

i dont think it is. i discuss this on my blog. the case's charges from socgen are light enough for the bank to not disclose the trades.

[hamrite]

One question: Did Kerviel go through a drug test to see if he was hooked on cocaine? A lot of traders are hooked, and so why wouldnt he ?

[Bonmayennais]

Very to read the old comments now...

[simariato]

I hope you ll understand better the situation of this trader, don't believe your medias... Bye!

[simariato]

In banks, French system is different of the amercian one. In france, the high hierarchy of finances is very closed, that s why we can have a lot of corruption. If you see that a french trader has exceeded his finances manipulations, that means he tried to be noticed by his superiors. And, if you want to progress in this type of domain, you re obliged to go in very high schools. Jerome wasn't from them.

[Meteotrance]

The trading system is a paranoïd system, trust me ^^ !!! there is an alternative ^^and there is no comunism or anarchy ^^ it's call solidarity to each other lol

[pouchetmidje]

you're not a trader

[VengeanceForever]

jerome kerviel a fait fort pour ne pas se faire remarquer! ou alors ce sont les controleurs de donnés qui se branle toute la journée !! une chose est sur c'est qu'a part Kerviel ..il va y'en avoir des licenciements pour faute grave.. vue les 4.9milliards qui se sont envollé^^ hahaa