May 26 (Bloomberg) -- Jerome Kerviel, who goes on trial next month over his role in Societe Generale SAâs 4.9 billion- euro ($6 billion) trading loss, said his superiors âhelpedâ him make the futures bets at the center of the case. âIâm innocent,â Kerviel, 33, said in a Bloomberg Television interview yesterday outside his lawyerâs Paris office. âI want to prove to everybody that my superiors knew what I was doing and helped me to do it, to make more money for the bank.â Societe Generale, Franceâs second-largest bank by market value, disclosed the loss in January 2008, saying it occurred after unwinding unauthorized positions taken by a lone employee. While Kerviel has previously said the bank knew about the trades, he now explicitly says his supervisors helped him. âThe more money you get for the bank,â Kerviel said in the interview two weeks before the trial is scheduled to start in Paris. âThe more the bank asks you for. My only objective was to make money for the bank.â Kerviel is charged with abuse of trust, falsifying documents and hacking into bank computers. He faces as many as five years in prison if found guilty at the trial that starts June 8. Waiting for Kerviel Jean Veil, a lawyer for Societe Generale, said in a telephone interview that he is âwaiting for Mr. Kerviel to proveâ that his superiors aided him in his bets. Paris-based Societe Generale will ask the court to make Kerviel pay it 4.9 billion euros as âreparation for the financial cost of unwinding the fraudulent operations, as well as the cost of the recapitalization,â Veil said. The June trial will bring the banking sector and the trading culture under the judgesâ scrutiny, as well as the question of his own guilt, Kerviel said. âMy first goal is to defend myself and to proveâ that the bank hierarchy knew of his activities, said Kerviel, wearing blue jeans, a black v-necked shirt, and gray pinstriped jacket on a sunny day with temperatures of 86 degrees Fahrenheit (30 degrees Celsius). âI hope perhaps one of the upsides of the trial will be to expose the practicesâ of traders. Kerviel worked on Societe Generaleâs Delta One trading desk, specializing in European stock market index futures. His job was to arbitrage small price differences between contracts, not to take bets on the marketsâ direction. His positions, mostly on Germanyâs DAX Index and the pan-European Euro Stoxx 50, had losses of 1.4 billion euros when Societe Generale discovered the fraud. The bank said it lost an additional 3.5 billion euros liquidating the stakes as European markets fell. http://www.bloomberg.com/apps/news?pid=20601109&sid=aL1HPGZr_TyY&pos=11 Kerviel, you lousy lyer. 30 years in prison is not enough for you !
As long as a firm keeps getting bailed out by their governments, I doubt they'd be using any "risk controls"
I would love to see him sentenced to pay some enormous amount to socgen, because that's all he deserves, more than prison. Perhaps not 4.9 B but 100 mil would be fair. Then he would have to do a lot of interviews and write a lot of books like he does right now to offset that.
They are not going to find anything tangible on his superiors. All Risk managers do this. They put one thing in email that shows they are trying to control risk and they say another thing on the trading floor. that gives them plausible deniability. Sorry, Kerviel you are the patsy and you are the one that is going to be screwed in prison, literally and figurativly.