Tuesday 19 September 2017

Rogue trader loses appeal for new inquiry

Jerome Kerviel outside the hearing in Paris
Jerome Kerviel outside the hearing in Paris

Lionel Laurent Paris

AN employment tribunal yesterday rejected former Societe Generale (SocGen) trader Jerome Kerviel's plea for a new expert inquiry to help overturn his dismissal in France's biggest-ever trading scandal in 2008.

In a separate criminal case, Kerviel is running out of options to escape conviction and a jail sentence upheld by an appeals court in October over €4.9bn in losses that French bank SocGen said were the result of unauthorised trades by Kerviel.

The 36-year-old ex-trader, who was ordered to repay the huge sum in its entirety, has never denied masking the €50bn in market positions that went wrong as the financial crisis unfolded in early 2008. He has, however, always said his bosses knew what he was doing, an accusation SocGen denies.

Kerviel has asked the employment tribunal to overturn his dismissal and grant him €4.9bn in damages but no new inquiry will now be opened. Speaking outside the courthouse after the hour-long hearing in Paris, Kerviel said he was disappointed but would keep fighting.

Far-left groups and the popular press in France have painted Kerviel as a naive victim of big finance, despite his role before the case as a highly-paid trader.

In a short statement, SocGen's lawyers said: "Despite the media presence orchestrated by Jerome Kerviel, the legal system showed once again that it could remain clear-headed."

Irish Independent

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