Rogue Trader Crushes Bank Societe Generale (Part7)

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Jerome Kerviel turned himself in to police on Saturday to answer accusations from the bank that he falsified documents and gained unauthorised computer access to circumvent risk-management controls.

Mr Kerviel's lawyers yesterday accused the bank of turning him into a scapegoat and trying to "create a smokescreen" to cover up wider losses from the US subprime mortgage crisis.

They argue Societe Generale brought the losses on itself by hastily selling off Mr Kerviel's positions last week after discovering his trades and hedges on share futures.

Mr Kerviel had held positions worth about 50 billion euro ($A83.96 billion) when he was caught - well in excess of the bank's market value of 35.9 billion euro ($A60.29 billion) and its shareholder funds.

Within days, Societe Generale moved to unwind his deals, incurring losses of 4.9 billion euro ($A8.23 billion).



ABOUT 100 Societe Generale shareholders have filed suit for insider trading and manipulating share prices after the French bank revealed multi-billion-euro losses, a lawyer said overnight.

The suit targets a member of the bank's supervisory board who sold shares worth €85.7 million ($143.91 million) on January 9 and "any other person who directly or indirectly profited from insider information", said lawyer Frederik-Karel Canoy.

The financial market regulator, the AMF, said the sale had been carried out by Robert A Day, a member of the board since 2002, at a price of €95.27 ($159.98) per share.

It said that two foundations "linked" to Mr Day, the Robert A Day Foundation and the Kelly Day Foundation, had sold shares on January 10 in the respective amounts of €8.63 million ($14.49 million) and €959,066 ($1.61 million).

Category:

News & Politics

Tags:

• rogue
• trader
• Societe
• Generale
• bank
• banking
• trading
• Jerome
• Kerviel

[TRADINGSUPPORT]

He didn´t loose the Money ....

The others contractors WINS the Money ... this is the right view to Futures market ...

[SLACKER614]

Kerviel is a hero....these banks deserve to be destroyed...

[divinacomedias]

I mean your average commercial bank.

[divinacomedias]

Surely all banks invest huge sums...