France Frees Rogue Trader Kerviel

He'll be under 'judicial control' during probe of $8B SocGen loss

By Rob Quinn, Newser Staff

Posted Mar 18, 2008 8:50 AM CDT

(Newser) – Jerome Kerviel, the trader accused of an $8 billion fraud that nearly brought down Societe Generale, has been freed by a Paris court after five weeks in detention, the Guardian reports. The trader, who faces charges including breach of trust and falsifying documents, will remain free while the case is investigated but won't be allowed to leave Paris.

"There was no justification for his continued detention," his lawyer said. A lawyer for SocGen said he was satisfied with the conditions of release: Kerviel will have to hand in his passport, report to police once a week, and not go near trading floors. Kerviel claims the bank's bosses knew what he was doing but turned a blind eye as long as he was profitable.

Societe Generale trader Jerome Kerviel's lawyer Elisabeth Meyer, center, speaks to the medias at courthouse in Paris Tuesday, March 14, 2008. (AP Photo/Francois Mori)

French trader Jerome Kerviel is seen at his lawyer Elisabeth Meyer's office in Paris, Tuesday, Feb. 5, 2008. (AP Photo/Martin Bureau, pool)

French trader Jerome Kerviel, right, is seen with his lawyer Elisabeth Meyer, left, at Meyer's office in Paris, Tuesday, Feb. 5, 2008. (AP Photo/Martin Bureau, Pool)

Another trader at Societe Generale was taken in for questioning Wednesday, March 12, 2008 after investigators searched the bank's offices in connection with a multibillion dollar trading scandal. (AP Photo/Remy de la Mauviniere, file)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Second SocGen Broker Held in Kerviel Probe

Could derail rogue trader's chances of getting released

(NEWSER) - Authorities have taken a second Societe Generale employee into custody and conducted a search of La Defense headquarters, as the probe into unauthorized securities trading that cost the French bank $7.6 billion expands, reports Bloomberg. Police are holding a broker from a bank subsidiary, said a SocGen spokeswoman. Another broker was taken into custody, questioned, and released last month. More»

SocGen Rogue Trader Guilty; Must Repay $6.7B

Kerviel will serve 3 years in prison in bank meltdown

(NEWSER) - A trader who brought Societe Generale to the brink of collapse in 2008 has been sentenced to three years in prison and ordered to repay the $6.7 billion his unauthorized trades cost the French bank. Jerome Kerviel, 33, was found guilty of breach of trust and computer hacking and sentenced to 5 years in jail, with two suspended, Bloomberg reports. More»

Rogue UBS Trader Turned Himself In

And that's the only way the bank found him

(NEWSER) - So who was the crack financial sleuth who caught rogue UBS trader Kweku Adoboli? Um, that’d be Kweku Adoboli. UBS’ internal systems didn’t blink at Adoboli’s $2 billion screw-up ; it only came to light because he brought it to his bosses’ attention, the BBC reports. The revelation is likely to undermine confidence in UBS’ ability to manage risks. (Adoboli remains in police custody and was charged today with fraud and false accounting, notes the Wall Street Journal .) More»

Rogue UBS Trader Loses $2B

Swiss bank's shares dive after unauthorized trading revealed

(NEWSER) - A rogue trader at UBS has lost around $2 billion, the Swiss banking giant says. The unauthorized trades by a trader in its investment banking unit "could lead UBS to report a loss for the third quarter of 2011," but "no client positions were affected," the bank said in a statement that offered few other details. Shares in UBS dived almost 10% in early trading after the announcement, which arrived on the third anniversary of Lehman Brothers' declaration of bankruptcy, the Guardian notes. More»

SocGen Chief Resigns Amid Growing Outcry

Executive pay scandal, $6.4B fraud fallout push Bouton to quit

(NEWSER) - The chairman of Société Générale announced his resignation today amid growing public criticism of his performance, Reuters reports. Daniel Bouton had been scolded by Nicolas Sarkozy for his handling of the rogue trading affair that cost the bank $6.4 billion; last month the president attacked the bank for its handling of executive pay packages. In a statement, Bouton blamed the "repeated attacks against me personally" for his decision to go. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

France Frees Rogue Trader Kerviel

He'll be under 'judicial control' during probe of $8B SocGen loss

OTHER STORIES ON OUR RADAR

Paris • banking • rogue trader • securities fraud • Societe Generale • Jerome Kerviel

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Second SocGen Broker Held in Kerviel Probe

Could derail rogue trader's chances of getting released

SocGen Rogue Trader Guilty; Must Repay $6.7B

Kerviel will serve 3 years in prison in bank meltdown

Rogue UBS Trader Turned Himself In

And that's the only way the bank found him

Rogue UBS Trader Loses $2B

Swiss bank's shares dive after unauthorized trading revealed

SocGen Chief Resigns Amid Growing Outcry

Executive pay scandal, $6.4B fraud fallout push Bouton to quit

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

France Frees Rogue Trader Kerviel

He'll be under 'judicial control' during probe of $8B SocGen loss

Bookmark & Share

OTHER STORIES ON OUR RADAR

Paris • banking • rogue trader • securities fraud • Societe Generale • Jerome Kerviel

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Second SocGen Broker Held in Kerviel Probe

Could derail rogue trader's chances of getting released

SocGen Rogue Trader Guilty; Must Repay $6.7B

Kerviel will serve 3 years in prison in bank meltdown

Rogue UBS Trader Turned Himself In

And that's the only way the bank found him

Rogue UBS Trader Loses $2B

Swiss bank's shares dive after unauthorized trading revealed

SocGen Chief Resigns Amid Growing Outcry

Executive pay scandal, $6.4B fraud fallout push Bouton to quit

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?