Bank Was Warned About Rogue Trader

Prosecutor says Kerviel was after a big bonus with mammoth trades
By Rob Quinn,  Newser Staff
Posted Jan 29, 2008 3:19 AM CST
Christian Charriere-Bournazel, left, with at his side Elisabeth Meyer, right, the lawyers of Jerome Kerviel, addresses reporters in front of the financial branch of the Paris Court house in Paris Monday...   (Associated Press)
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(Newser) – The Eurex stock exchange alerted Société Générale to positions held by Jérôme Kerviel months before the bank discovered his staggering $7 billion fraud, the Independent reports. Kerviel produced fake documents to justify his actions to the bank and was motivated by a drive to impress his bosses with lucrative trades and earn a large bonus, according to the lead prosecutor in the case.

The prosecutor implied that the bank had turned a blind eye to unauthorized trades. Kerviel is now free on bail, although prosecutors, fearing he could turn suicidal when the reality of his situation finally sinks in, had recommended that he be kept in protective custody. Kerviel's lawyers say the refusal of Paris judges to grant all the prosecution's demands indicates they share doubts that Kerviel was a lone villain.