SocGen Fraud

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April 2008
- Rogue Trader Gets a Job
  
  Wall Street Journal | Apr 26, 08 2:37 PM CDT
  
  (Newser) - Jérôme Kerviel is working once again, despite having cost France’s Société Générale $7.68 billion in unauthorized trading. Released from prison a few weeks ago, the rogue trader is employed as an IT consultant for a French company specializing in networks and security, the Wall Street Journal reports. The gig could also help keep Kerviel out of jail. More »
- SocGen CEO Resigns Over Rogue Trader
  
  Financial Times (UK) | Apr 18, 08 4:59 AM CDT
  
  (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 »
- Rogue Trader to Sue SocGen
  
  Times (UK) | Apr 3, 08 8:49 AM CDT
  
  (Newser) - The rogue trader whose $7.8 billion in transactions nearly sank Société Générale has filed papers in preparation for a wrongful dismissal lawsuit, the Times of London reports. Jérôme Kerviel will claim the French bank has failed to prove he did anything wrong. He was released on bail last month after 31 days in jail on charges of breach of trust, fabricating documents, and illegally accessing computers. More »
March 2008
- France Frees Rogue Trader Kerviel
  
  Guardian (UK) | Mar 18, 08 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. More »
- Second SocGen Broker Held in Kerviel Probe
  
  Bloomberg | Mar 12, 08 10:23 AM CDT
  
  (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 »
February 2008
- SocGen Posts Record $4.9B Q4 Loss
  
  Bloomberg | Feb 21, 08 9:54 AM CST
  
  (Newser) - Societe Generale's annual profits plummeted a whopping 82% after a record $4.9 billion fourth quarter loss fueled by subprime woes and the actions of rogue trader Jerome Kerviel, reports Bloomberg. France’s second-largest bank today said net income was 947 million euros, compared to 5.22 billion euros in 2006. SocGen warned further losses could come in the first quarter. More »
- SocGen: Lax Controls Led to $7.2B Fraud
  
  Wall Street Journal | Feb 21, 08 7:50 AM CST
  
  (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
  
  CNN | Feb 15, 08 11:26 AM CST
  
  (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 »
- SocGen to Raise $8B With Discount Shares
  
  Bloomberg | Feb 11, 08 8:04 AM CST
  
  (Newser) - Societe Generale, the French bank hit with a $7 billion loss in a massive trading fraud, will replenish its cash reserves through an $8 billion stock offering at a heavily discounted rate, the company said today. Shares will be priced at €45.50, or 39% off the Feb. 8 closing price, lower than the 30% discount analysts predicted. Existing shareholders can buy one share for every four they own, Bloomberg reports. More »
- Trader's Alleged Accomplice Released
  
  Wall Street Journal | Feb 9, 08 1:31 PM CST
  
  (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 »
- SocGen Trader Headed for Jail
  
  New York Times | Feb 8, 08 7:05 PM CST
  
  (Newser) - A Paris court ruled today that rogue trader Jérôme Kerviel should be behind bars during the remainder of the investigation into his case, the New York Times reports. Kerviel is suspected of fake trading that cost French bank Société Générale $7 billion. When he heard the ruling, Kerviel looked like “the sky had fallen on his head,” said an opposition lawyer. More »
- Cops Hold 2nd Trader in Probe
  
  Wall Street Journal | Feb 8, 08 8:49 AM CST
  
  (Newser) - A broker who works for a Societe Generale subsidiary is being questioned by French authorities in connection with the $7 billion loss the bank suffered at the hands of rogue trader Jerome Kerviel, the Wall Street Journal reports. Prosecutors and bank officials previously said they believed Kerviel acted alone, but a series of instant messages suggest the second trader at least knew of the scheme. More »
- For Reeling SocGen, the Taxman Cometh
  
  Wall Street Journal | Feb 7, 08 10:07 AM CST
  
  (Newser) - As if the $7.17 billion Societe Generale lost at the hands of rogue trader Jerome Kerviel wasn’t enough pain for the French banking giant, it’s now looking at losing another chunk of change—this time to the taxman, reports the Wall Street Journal. Investigators say Kerviel earned $2.1 billion for the bank in 2007, before his deals headed south. More »
- Trader Won't Be SocGen's 'Scapegoat'
  
  AFP | Feb 5, 08 3:28 PM CST
  
  (Newser) - Jerome Kerviel will not “be made a scapegoat” for the huge losses at Société Générale, he told AFP today in his first public comments since his trading scheme was discovered. Kerviel said he had been “designated” as the sole wrongdoer by the French bank, which he claims turned a blind eye so long as he was making profits. More »
- SocGen Trader Was No Super Hacker
  
  PC World | Feb 4, 08 3:56 PM CST
  
  (Newser) - While he’s been called a computer genius, the access Jerome Kerviel obtained to the Société Générale’s systems was probably the result of terrible IT security, writes PC World, not a successful hack of the French bank’s computers. Managing a bank’s passwords is a task often given to the lowest-level IT employee, which Kerviel was before his infamous stint as a futures trader. More »
- What Does This Man Have to Do to Get Fired?
  
  Wall Street Journal | Feb 1, 08 11:27 AM CST

News Sections

Newser Specials

Stories

Rogue Trader Gets a Job

SocGen CEO Resigns Over Rogue Trader

Rogue Trader to Sue SocGen

France Frees Rogue Trader Kerviel

Second SocGen Broker Held in Kerviel Probe

SocGen Posts Record $4.9B Q4 Loss

SocGen: Lax Controls Led to $7.2B Fraud

Lawyer: SocGen 'Condoned' Trader's Deals

SocGen to Raise $8B With Discount Shares

Trader's Alleged Accomplice Released

SocGen Trader Headed for Jail

Cops Hold 2nd Trader in Probe

For Reeling SocGen, the Taxman Cometh

Trader Won't Be SocGen's 'Scapegoat'

SocGen Trader Was No Super Hacker

What Does This Man Have to Do to Get Fired?