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'Rogue Trader' Identified, But Still on Loose

'Malicious' 31-year-old massively defrauded SocGen, did not benefit

By Sam Gale Rosen, Newser Staff

Posted Jan 24, 2008 2:46 PM CST

(Newser) – Jérôme Kerviel, a trader at Société Générale, is the man who lost the French bank $7.2 billion in fraudulent trades, using an "intimate and malicious" knowledge of bank procedure to cover his tracks, the Wall Street Journal reports. The 31-year-old Kerviel got no benefit from the trades, though the huge loss may have helped to spark Monday's worldwide selloff.

Christian Noyer, head of the Bank of France, said today there will be an investigation at Société Générale, and that the bank will "look into whether the internal controls were sufficient." But Noyer denies a failure of oversight on the government's part. "We can't have a controller behind every trader at every bank in the country at every moment," he said.

French bank Societe Generale CEO Daniel Bouton reacts during a press conference at the bank headquarters, Thursday Jan. 24, 2008 outside Paris. Societe Generale said it has uncovered a euro 4.9 billion... (Associated Press)

French bank Societe Generale CEO Daniel Bouton reacts during a press conference at the bank headquarters, Thursday Jan.24, 2008 outside Paris. Societe Generale said it has uncovered a euro 4.9 billion... (Associated Press)

This internal security photo taken from French bank Societe Generale's Web site shows a man identified on the site as Jerome Kerviel. Societe Generale said Thursday Jan. 24, 2007 it has uncovered a 4.9... (Associated Press)

Bank of France governor Christian Noyer speaks during a press conference Thursday Jan. 24, 2008 in Paris. French bank Societe Generale said Thursday it has uncovered a euro4.9 billion (US$7.14 billion)... (Associated Press)

People enter the headquarters building of French bank Societe Generale, Thursday Jan. 24, 2008, outside Paris. Societe Generale said Thursday it has uncovered a euro4.9 billion (US$7.14 billion) fraud,... (Associated Press)

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SocGen CEO Resigns Over Rogue Trader

Bouton steps down at last; future remains grim for French bank

(NEWSER) - The CEO of Société Générale will step down, at last bowing to pressure in the wake of the $7.8 billion rogue trading scandal. Although investors and politicians—including French President Nicolas Sarkozy—had demanded Daniel Bouton's resignation immediately after the revelation of Jérôme Kerviel's massive fraud, the bank had insisted he stay on to keep SocGen from collapse, reports the Financial Times. More»

SocGen: Lax Controls Led to $7.2B Fraud

French bank says 24 internal alarms were ignored over 14 months

(NEWSER) - Rogue SocGen trader Jerome Kerviel, whose unauthorized deals led to a $7.2 billion loss for the French bank, continued his trading for more than a year after the first warning flag was raised in the department that was supposed to detect risky trading, reports the Wall Street Journal. Kerviel wrote at least seven bogus emails flagged for anomalies, and his trades tripped 24 alarms over a 14-month period beginning in July 2006, the bank admits in a report released yesterday. More»

Lawyer: SocGen 'Condoned' Trader's Deals

Bank couldn't have missed billions in moves: Kerviel's rep

(NEWSER) - The French trader who lost Société Générale $7.2 billion acted with the tacit support of the banking giant's management, which "condoned" his trades, Jérôme Kerviel's lawyer says. The assertion contradicts executives' claims that Kerviel acted alone. "Jérôme is a smart trader, but not smarter than any other guy at SocGen," the lawyer told CNN. More»

Trader's Alleged Accomplice Released

Second SocGen worker not charged as bank struggles to stay alive

(NEWSER) - Authorities today released a second suspect in the bank fraud case that cost Société Générale a dizzying $7.09 billion, the Wall Street Journal reports. But the suspect’s ex-colleague, Jerome Kerviel, remains jailed, as the bank and French officials insist he acted alone. Still, prosecutors labeled the second man an assisted witness, which makes him a witness without being charged, AFP explains. More»

Breakup Rumors Swirl Around SocGen

Fraud-plagued French bank may be too big for single bidder

(NEWSER) - Wounded Société Générale is looking more and more like a takeover target, prompting France's prime minister to jump into the fray today and say the government would defend the country's second-largest bank against hostile raids, the Wall Street Journal reports. With a $7.1 billion loss from fraudulent trades shaking confidence in the bank and its stock price plummeting, some analysts are predicting a breakup, Reuters reports. More»

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'Rogue Trader' Identified, But Still on Loose

'Malicious' 31-year-old massively defrauded SocGen, did not benefit

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SocGen CEO Resigns Over Rogue Trader

Bouton steps down at last; future remains grim for French bank

SocGen: Lax Controls Led to $7.2B Fraud

French bank says 24 internal alarms were ignored over 14 months

Lawyer: SocGen 'Condoned' Trader's Deals

Bank couldn't have missed billions in moves: Kerviel's rep

Trader's Alleged Accomplice Released

Second SocGen worker not charged as bank struggles to stay alive

Breakup Rumors Swirl Around SocGen

Fraud-plagued French bank may be too big for single bidder

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'Rogue Trader' Identified, But Still on Loose

'Malicious' 31-year-old massively defrauded SocGen, did not benefit

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OTHER STORIES ON OUR RADAR

France • bank fraud • Jérôme Kerviel • Société Générale • Bank of France

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

SocGen CEO Resigns Over Rogue Trader

Bouton steps down at last; future remains grim for French bank

SocGen: Lax Controls Led to $7.2B Fraud

French bank says 24 internal alarms were ignored over 14 months

Lawyer: SocGen 'Condoned' Trader's Deals

Bank couldn't have missed billions in moves: Kerviel's rep

Trader's Alleged Accomplice Released

Second SocGen worker not charged as bank struggles to stay alive

Breakup Rumors Swirl Around SocGen

Fraud-plagued French bank may be too big for single bidder

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Newser By Users

Community

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