It was just the latest step in an eight-year saga in which Societe Generale pulled itself back from the brink of bankruptcy and Kerviel spent nearly five months behind bars after his trades cost the bank 4.
These losses which are estimated at 4. The Societe Generale bank has also been blamed for poor internal checks and balances which would have helped to discover and curb the shoddy trading deals much earlier.
As at December 31stthe bank was estimated to have amassed Under this position, Jerome Kerviel was required to conduct arbitrage trading without taking any huge risks that would cost the Bank.
He was adept at computers and had come up with means of evading suspicion while working at the compliance department. However, this rogue trader was discovered when the Societe Generale Bank discovered in mid January that an email of a trading deal with one of the big banks in France was fictitious.
Kerviel failed to give sufficient explanations for this and a call to the supposed bank confirmed that no such huge deal had been completed. By then, the Asian market had collapsed and the European markets fell drastically.
The relevant authorities were informed and Mr. Kerviel was brought in for questioning and apprehended. The Rulings and effects of the case The French authorities found Mr. Jerome Kerviel guilty of forgery, fictitious transactions, computer hacking and falsifying documents.
Despite the huge losses the rogue trader had incurred the court only sentenced him to three years in prison because the Societe Generale and the prosecutor failed to establish that Mr.
The French Regulator also fined the Societe Generale for poor internal controls and failure to notice the Kerviel financial mishap on time. As a result, Societe Generale was fined 4 million Euros, the largest fine to ever be issued to a financial institution in the Euro zone.
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Is this frustrating you? Contact our expert assignment writers at essayhomeworkhelp.The Facts about the Jerome Kerviel $6 Billion Societe Generale Fraud case The Issues in Jerome Kerviel’s $6 billion fraud case Jerome Kerviel is a famous French rogue trader who is responsible for huge losses in the Societe Generale bank where he worked.
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Societe Generale Corporate and Investment Banking - SGCIB - International Trade; Financial Modeling; Jerome Kerviel. Trader at Societe Generale.
Trader at Societe Generale.
Bosses at French banking giant Societe Generale were aware of the activities of "rogue trader" Jerome Kerviel, a top detective working on the case reportedly told an investigating judge, according.
While banks such as Societe Generale will generally find a bank to trade with in countries where our customers need it, some banks based in certain regions, such as Africa, increasingly have difficulty in finding a global or large regional bank to connect with them on trade finance.
Source: The Trade Derivatives Spring issue.
In comparison to its rivals, Societe Generale was relatively late to the game. It carried out its first derivatives trade in after it put together a team of five options traders within its foreign exchange and treasury department.