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Rogue Trader Bet $73B —Twice SocGen's Worth

'Complicity' by others can't be ruled out

By Peter Fearon,  Newser Staff

Posted Jan 28, 2008 5:41 AM CST
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(Newser) – Maverick trader Jérôme Kerviel gambled with $73 billion, twice the market value of Société Générale, by stealing computer access codes and setting up fake email accounts, the French bank revealed as new details emerged in one of the biggest scandals in history. One executive also conceded that the "complicty" of others could not be ruled out. Kerviel cost the company $7.14 billion as his "virtual losing position became huge," said the head of the bank, who called the scandal a "Greek tragedy."

French detectives are now walking Kerviel through risky trade after risky trade, reports the Washington Post. He has been in custody since Saturday. "The investigation, led by the specialists of the financial police, is extremely fruitful," said a French prosecutor. The bank released more details as it came under heavy fire for concealing its losses for a week while disastrous positions were unraveled.

Financial Police headquarters, in Paris. The head of the financial section of the Paris prosecutor's office, Jean-Michel Aldebert, said Sunday the questioning of Jerome Kerviel, a trader implicated in a massive bank fraud case is proving extremely fruitful. (AP Photo/Thibault Camus)
Financial Police headquarters, in Paris. The head of the financial section of the Paris prosecutor's office, Jean-Michel Aldebert, said Sunday the questioning of Jerome Kerviel, a trader implicated in...   (Associated Press)
Headquarters of French bank Societe Generale outside Paris. Executives concealed a $7.14B fraud while they unwound disastrous positions in the futures market. (AP Photo/Jacques Brinon)
Headquarters of French bank Societe Generale outside Paris. Executives concealed a $7.14B fraud while they unwound disastrous positions in the futures market. (AP Photo/Jacques Brinon)   (Associated Press)
Jerome Kerviel, the maverick trader whose allegedly unauthorized deals left French bank Societe Generale holding $7.14B in losses.(AP Photo/Societe Generale)
Jerome Kerviel, the maverick trader whose allegedly unauthorized deals left French bank Societe Generale holding $7.14B in losses.(AP Photo/Societe Generale)   (Associated Press)
The head of the financial section of the Paris prosecutor's office, Jean-Michel Aldebert, center, addresses reporters outside the Financial Police headquarters, Sunday. Aldebert said the questioning of rogue trader Jerome Kerviel is proving extremely fruitful. (AP Photo/Thibault Camus)
The head of the financial section of the Paris prosecutor's office, Jean-Michel Aldebert, center, addresses reporters outside the Financial Police headquarters, Sunday. Aldebert said the questioning of...   (Associated Press)
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Scandale

French style of capitalism stained
New York Times

Behind the market trader's chaos
Time

Rogue trader hacked computers
CNN

Trader to stay in custody
Bloomberg

Money • World

 
DAX • Jérôme Kerviel • Société Générale • Jean Michel Aldebert • Daniel Bouton

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