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December 2, 2008 10:17:47 AM CST

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Lawyer: SocGen 'Condoned' Trader's Deals

Posted Feb 15, 08 11:26 AM CST in Business,  Crime & Courts,  World 

(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.

His accounts were nearly $2 billion in the red in June and $1 billion in the black in December—figures so large his supervisors had to be aware of his actions, Guillaume Selnet says. "When you find the bank condoned what Jerome did for more than two years, I don't know if you can still state that he acted alone,"  he said.

Sources CNN, Financial Times (UK)

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A woman braves the wind outside the bank headquarters, Wednesday Jan. 30, 2008 in La Defense, outside Paris.   (Associated Press)
View of the French bank Societe Generale headquarters in Paris suburb La Defense, Monday Feb.11, 2008. French bank Societe Generale SA hopes to raise euro 5.5 billion (nearly US$8 billion) in a heavily...   (Associated Press)
In this pool photo made available Wednesday, Feb. 6, 2008, French trader Jerome Kerviel is seen at his lawyer Elisabeth Meyer's office in Paris, Tuesday, Feb. 5, 2008. Potential legal troubles for French...   (Associated Press)
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France • crime • Société Générale • Jérôme Kerviel • bank fraud • trader


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