Wednesday, October 24, 2012

Rogue trader Kerviel gets three years in the Klink, $7B fine




The Paris appeals court on Wednesday ordered former Societe Generale trader Jerome Kerviel to spend three years in prison and pay back a staggering €4.9 billion (about $7 billion) in damages for one of the biggest trading frauds in history, the NY Post reports.

The 35-year-old Kerviel, who never profited personally from his unauthorized trades, says he was a scapegoat for the bank and a victim of a financial system that runs on greed and profits. His lawyer David Koubbi called the verdict "absolutely lamentable" and said his team will consider taking the case to France's highest court.

A lower court convicted Kerviel in October 2010 of forgery, breach of trust and unauthorized computer use for covering up bets worth nearly €50 billion in 2007 and 2008. By the time his trades were discovered and made public, he had amassed losses of almost €5 billion on those bets…...

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