Société Générale demands 4.9 billion euros from its former employee. by Milota Sidorova

The third and the last week of Société Générale versus Jérôme Kerviel trial is in its finish line. The result is expected on Friday June 25th, The final hearings were on schedule these days. Kerviel who faces the trial for risky business and unauthorized trades, stood against his former boss, ex-chairman and CEO Daniel Bouton who literally called him “a liar” causing the bank great loss. For Bouton the most important damage hit the corporate image. The bank post a loss of almost 5 billion euros due Kerviel's business. Kerviel neither argued nor challenged his statments, but added his bosses had been perfectly informed about his ac! tions and tolerated them until the earnings were high. But yesterday Société Générale, one of the biggest French banks posted statement in which it demanded 4.9 billion euros (the loss caused by Kerviel) from respondent himself. The compensation request was made by company's lawyer Jean Veil. Kerviel, if pleaded guilty would stay up to five years in prison and face a fine of 375,000 euros for submitting false data into the bank system. According to bank, Kerviel did all tradings alone and without authorization in 2008. His tradings started in 2006, continuing during 2007, but the volume and the size of the trades were relatively small and limited. Before Bernard Madoff case, it was the largest banking fraud in the history. Kerviel however didn't waste his time and published the book “Gears: Memoires of a Trader) last month in which he describes the whole hierarchy of the system and the tolerance of its representatives to unclear and very common bus! iness practices.

related story (sgx17677): http://www.france24.com/en/20100623-societe-generale-kerviel...

by Milota Sidorova for Cantell TV (http://cantell.tv)

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