"SocGen's stance in his case, Kerviel met with Pope Francis outside the Vatican on 19 February 2014, and undertook a pilgrimage from Rome to Paris against the ""tyranny of the markets"". On 8 September 2014, Kerviel was released from Fleury Merogis prison, having served less than five months of detention. He was to begin a job with an IT consultancy firm. Jérôme Kerviel Jérôme Kerviel (; born 1977) is a French trader who was convicted in the 2008 Société Générale trading loss for breach of trust, forgery and unauthorized use of the bank's computers, resulting in losses valued at €4.9"
"was at the centre of a financial scandal in 2009. The bank denied those accusations. January 2008: Trading loss incident (Kerviel Fraud) On January 24, 2008, the bank announced that a single futures trader at the bank had fraudulently lost the bank €4.9 billion (an equivalent of US$7.2 billion), the largest such loss in history. The company did not name the trader, but other sources identified him as Jérôme Kerviel, a relatively junior futures trader who allegedly orchestrated a series of bogus transactions that spiraled out of control amid turbulent markets in 2007 and early 2008. Partly due to the"
"Kerviel's lawyer called for his client to be acquitted. The ruling was announced on October 5, 2010, at 11 am. Jérôme Kerviel was found guilty of the three charges filed against him: breach of trust, fraudulent inputting of data into an IT system and forgery and use of forged documents. He was found to be solely responsible for the record loss suffered by Société Générale in early 2008, and was sentenced to five years in prison, with two of those years suspended, and ordered to pay damages of 4.9 billion euros to the Bank. Jérôme Kerviel immediately launched an appeal"
"of Jérôme Kerviel began on June 8, 2010 at the Paris Palais de Justice, and lasted until June 25. Société Générale filed the civil suit. The former Société Générale trader was represented by Olivier Metzner, and the Bank was represented by Jean Veil, Jean Reinhart and François Martineau. The trial aroused much media interest, with a record number of requests for accreditation from journalists. Following more than two weeks of highly technical debate with much focus on Jérôme Kerviel's character, the State Prosecutor called for the former trader to be given a five-year prison sentence, two of them suspended, whilst"
"turn a blind eye. The current investigation involves what is reported to be the largest fraud in banking history. On 11 March 2008, Société Générale announced that another of their employees had been taken into custody in connection with the investigation of the fraud, and their headquarters searched by police. Kerviel's trial began on 8 June 2010. On 2010, he was found guilty and sentenced to five years of prison, with two years suspended, full restitution of the $6.7b which was lost, and a permanent ban from working in financial services. Caroline Guillaumin, a spokes-woman for Société Générale, stated that"
"presidential aide Raymond Soubie stated that Kerviel dealt with $73.3 billion (more than the bank's market capitalization of $52.6 billion). Three union officials of Société Générale employees said Kerviel had family problems. On January 26, 2008, the Paris prosecutors' office stated that Jerome Kerviel, 31, in Paris, ""is not on the run. He will be questioned at the appropriate time, as soon as the police have analysed documents provided by Société Générale."" ""Spiegel Online"" stated that Kerviel may have lost 2.8 billion dollars on 140,000 contracts earlier negotiated due to DAX falling 600 points. Société Générale SA says it had"
"paid a €300,000 bonus on a declared profit (approximately 0.5%). Family members speaking out say the bank is using Kerviel as a scapegoat to excuse its recent heavy losses. Kerviel was reporting to Eric Cordelle and Philippe Baboulin. Baboulin is now COO of Kepler Capital Markets Geneva. Cordelle has since launched a single malt whisky craft distillery. In answer to the rumors that Kerviel had fled Paris following the discovery of the unauthorised trading, on 2008 Kerviel's lawyer denied that he attempted to disappear and said he remained in Paris to face the accusations. Also on 24 January 2008, Société"
"of closing out trades within the three-day cycle alleged could not be accomplished given the immense sums involved. In answers to the rumors alleging Jérôme Kerviel had fled Paris following the discovery of the unauthorized trading, on January 24, 2008 Kerviel's lawyer denied that he attempted to disappear and said he remained in Paris to face the accusations. Also on January 24, 2008, Société Générale filed a lawsuit against ""a 31-year-old person"" for creating fraudulent documents, using forged documents and making attacks on an automated system, according to Clarisse Grillon, a spokeswoman for the Nanterre prosecutor. ""Le Figaro"" reported that"
"over three days of trading beginning 2008, a period after which the market experienced a large drop in equity indices, and losses attributed are estimated at (). The bank claimed Kerviel ""had taken massive fraudulent directional positions in 2007 and 2008 far beyond his limited authority"" and that the trades involved European stock index futures. Though bank officials say Kerviel apparently worked alone, skeptics question how unauthorized trading of this magnitude could go unnoticed. Kerviel's unassuming background and position have heightened the skepticism that he worked alone. Some analysts suggest that unauthorised trading of this scale may have gone unnoticed"
"have been tipped off in advance. Police were interested whether others were involved, either in the trades themselves, or whether they received notice of the bank's impending sell-off before the details of the scandal were publicly disclosed. Kerviel was formally charged on 2008 with abuse of confidence and illegal access to computers. He was released from custody a short time after. The charges filed carry a maximum three-year prison term. On 2008 investigating judges Renaud van Ruymbeke and Françoise Desset had rejected prosecutor Jean-Claude Marin's bid to charge Kerviel with the more serious crime of ""attempted fraud"" and refuse bail."
"the bank's total market capitalization. Bank officials claim that Kerviel tried to conceal the activity by creating losing trades intentionally so as to offset his early gains. According to the BBC, Kerviel generated €1.4 billion in hidden profits by the end of 2007. His employers say they uncovered unauthorized trading traced to Kerviel on January 19, 2008. The bank then closed out these positions over three days of trading beginning January 21, 2008, a period in which the market was experiencing a large drop in equity indices, and losses attributed are estimated at €4.9 billion. The bank claimed Kerviel ""had"
"loss, that same day two credit rating agencies reduced the bank's long term debt ratings: from AA to AA- by Fitch; and from Aa1/B to Aa2/B- by Moody's (B and B- indicate the bank's financial strength ratings). Executives said the trader acted alone and that he may not have benefited directly from the fraudulent deals. The bank announced it will be immediately seeking 5.5 billion euros in financing. On the eve and afternoon of January 25, 2008, Police raided the Paris headquarters of Société Générale and Kerviel's apartment in the western suburb of Neuilly, to seize his computer files. French"
"the restitution was ""symbolic"", and that the bank had no expectation that the sum would be paid. Olivier Metzner, Kerviel's lawyer, described the sentence as ""extraordinary"" and said that Kerviel would appeal. Kerviel's sentence was suspended until his appeal is completed. On January 21, 2008, European stock markets suffered heavy losses of about 6%. The sharp fall, which was followed by an emergency cut in the federal funds rate by the United States Federal Reserve on the following Tuesday (US markets were closed on the Monday for Martin Luther King Jr Day), came as Société Générale tried to close out"
"on the basis of an ""unreasonable decision"", according to his lawyer Olivier Metzner. Kerviel's sentence has therefore been suspended until the appeal, which is due to take place between June 4 and 28, 2012, and he is presumed innocent until that time. The huge amount of damages Kerviel was ordered to pay gave rise to much emotion amongst the general public and online. The sentencing of one man to pay such a large sum of money was met with incomprehension and anger amongst Internet users. The Bank announced that the sum was ""symbolic"" and it had no expectation that the"
"taken massive fraudulent directional positions in 2007 and 2008 far beyond his limited authority"" and that the trades involved European stock index futures. Though bank officials say Kerviel apparently worked alone, skeptics question how unauthorized trading of this magnitude could go unnoticed. Kerviel's unassuming background and position have heightened the skepticism that he worked alone. Some analysts suggest that unauthorized trading of this scale may have gone unnoticed initially due to the high volume in low-risk trades normally conducted by his department. The bank said that whenever the fake trades were questioned, Kerviel would describe it as a mistake then"
"cancel the trade followed by replacing that trade with another transaction using a different instrument to avoid detection. Kerviel's lawyers, Elisabeth Meyer and Christian Charrière-Bournazel, said that the bank’s managers ""brought the loss on themselves""; accused the bank’s management of wanting to ""raise a smokescreen to divert public attention from far more substantial losses in the last few months""; and said that Kerviel had made the bank a profit of $2 billion as of Dec. 31, 2007. Kerviel is not thought to have profited personally from the suspicious trades. Prosecutors say Kerviel has been cooperative with the investigation, and has"
"claim that throughout 2007, Kerviel had been trading profitably in anticipation of falling market prices; however, they have accused him of exceeding his authority to engage in unauthorized trades totaling as much as €49.9 billion, a figure far higher than the bank's total market capitalization. Bank officials claim that Kerviel tried to conceal the activity by creating losing trades intentionally so as to offset his early gains. According to the BBC, Kerviel generated in hidden profits at the beginning of 2008. His employers say they uncovered unauthorized trading traced to Kerviel on 2008. The bank then closed out these positions"
"detention was extended to 48 while French law enforcement questioned him about possible accomplices. The investigation later widened to encompass his personal cell phone records, and to explore possible links to other individuals working at rival banks and private investment firms who may be involved. The police are investigating whether he worked alone, and whether any investors outside of Société Générale may have been tipped in advance. Police are interested whether others were involved in either the trades themselves, or received notice of the bank's impending sell-off before the details of the scandal were publicly disclosed. Kerviel was formally charged"
"a net loss in the fourth quarter of 2007 after the French bank took a €4.9 billion ($7.18 billion) hit closing the unauthorized trading positions of Jérôme Kerviel. March 2008: Missing consignment of gold by Goldaş On March 21, 2008, Société Générale filed suit in Istanbul Commercial Court against Goldaş, a Turkish Jewelry firm, claiming the company had not paid for 15 tonnes(15,000 kg) of gold it had received through a consignment agreement. Goldaş stated that the consignment agreement was only for 3,250 kg of gold with a value of US$94 million. In June 2008, the court found Goldaş not"
"guilty. March 2009: Potential loss of $11 billion averted due to US government bailout of AIG On March 15, 2009, AIG disclosed that, among its counterparties, Société Générale was to date the largest recipient of both credit default swap (CDS) collateral postings ($4.1 bn) and CDS payments ($6.9 bn), payments made possible in part by the 2008 U.S. government bailout of AIG. Following two years of crisis resulting from the revelation of the Kerviel fraud and then from the eruption of the global financial crisis, the bank appeared to have put things behind it in 2010. Kerviel trial The trial"
"that these transactions were relatively small. The fake trading increased in frequency, and in size"". The Executive Chairman of Société Générale, Daniel Bouton described the pattern as like ""a mutating virus"" in which hundreds of thousands of trades were hidden behind offsetting faked hedge trades. Officials say Kerviel was careful to close the trades in just two or three days, just before the trades' timed controls would trigger notice from the bank's internal control system, and Kerviel would then shift those older positions to newly initiated trades. City experts have expressed skepticism of the bank's account, saying that a pattern"
"in addition to the Société Générale lawsuit, a group of shareholders filed a lawsuit for fraud, breach of trust and forgery. On the eve and afternoon of January 25, 2008, police raided the Paris headquarters of Société Générale and Kerviel's apartment in the western suburb of Neuilly-sur-Seine to seize his computer files. On January 26, 2008, the Paris prosecutors' office stated that Kerviel ""is not on the run. He will be questioned at the appropriate time, as soon as the police have analysed documents provided by Société Générale."" He was taken into police custody later that day. Kerviel's initial 24-hour"
"assets reflected the transformation of Rietumu Bank’s business model after the termination of relations with a considerable number of high-risk customers. On July 6, 2017, in the case France Offshore against Rietumu Bank, the First Instance Court in Paris imposed a EUR 80 mn fine. Aleksandr Pankov was conditionally sentenced for four years and Sergey Shchuka, the former Chief of the bank's office in France, was conditionally sentenced for one year with prohibition to operate in France for five years. The bank contests the judgement and is challenging it. The appeal hearing is forthcoming. In 2004, Global Finance recognised Rietumu"
"that the ""Consob said it notified Esteves of its accusations in November 2010. It said Esteves denied the allegations."" Furthermore, Esteves planned to ""appeal the action"", but did not do so, citing cost and a loss of time as his reasons. In 2013, Charles Rosier, a partner of BTG Pactual, was convicted in the largest insider trading case in the history of France. While at UBS, at the end of March and early April 2008, he and his cousin Joseph Raad used inside information to purchase shares and options in Geodis just before the announcement of a takeover bid. Of"
"told them his actions were also practiced by other traders in the company. Kerviel admits to exceeding his credit limits, but claims he was working to increase bank profits. He told authorities that the bank was happy with his previous year's performance, and was expecting to be paid a €300,000 bonus. Family members speaking out say the bank is using Kerviel as a scapegoat to excuse its recent heavy losses. The bank states that Kerviel was assigned to arbitrage discrepancies between equity derivatives and cash equity prices, and ""began creating the fictitious trades in late 2006 and early 2007, but"
"diverting public funds, abuse of trust and illegal conflict of interest. The suspended sentence meant he did not have to go to prison, and took into account his age, health, and status as a former head of state. He did not attend his trial, since medical doctors deemed that his neurological problems damaged his memory. Bribery investigations from South Africa to France are ongoing, including bribery claims of Jacques Chirac, Dominique de Villepin and Jean-Marie Le Pen bribery claim from Gabon ex-president Omar Bongo. In September 2011 was judged Bernard Granie of 300 000 bribery from Provence Recyclage. Alstom has"
"program at Aérospatiale, Jacques Hérubel, Concorde's chief engineer, and Claude Frantzen, head of DGAC, the French airline regulator. It was alleged that Perrier, Hérubel and Frantzen knew that the plane's fuel tanks could be susceptible to damage from foreign objects, but nonetheless allowed it to fly. The trial ran in a Parisian court from February to December 2010. Continental Airlines was found criminally responsible for the disaster. It was fined €200,000 ($271,628) and ordered to pay Air France . Taylor was given a 15-month suspended sentence, while Ford, Perrier, Hérubel and Frantzen were cleared of all charges. The court ruled"
"not on the run. He will be questioned at the appropriate time, as soon as the police have analysed documents provided by Société Générale."" He was taken into police custody later that day. Kerviel's initial 24-hour detention was extended to 48 hours while French law enforcement questioned him about possible accomplices. The investigation later widened to encompass his personal cell phone records, and to explore possible links to other individuals working at rival banks and private investment firms who may have been involved. The police were investigating whether he worked alone, and whether any investors outside of Société Générale may"
"experts have expressed skepticism of the bank's account, saying that a pattern of closing out trades within the three-day cycle alleged could not be accomplished given the immense sums involved. Kerviel is not thought to have profited personally from the suspicious trades. Prosecutors say Kerviel has been cooperative with the investigation, and has told them his actions were also practiced by other traders in the company. Kerviel admits to exceeding his credit limits, but claims he was working to increase bank profits. He told authorities that the bank was happy with his previous year's performance, and was expecting to be"
"high market volatility at the time. The group of employees responsible for making the unauthorised trades were dismissed. French banks have also been affected to some point by the fraud set by Bernard Madoff. Most importantly Natixis, an investment bank, potentially lost €450 million in the process and BNP Paribas could lose €350 million. Neither Natixis or BNP Paribas directly invested in Madoff's but through bonds issued by the US treasury they could face such loses. It is to be determined if all of these are effectively lost, which ones can be recovered and what can be saved by legal"
"illicit profits between 1988 and 1999 amounted to US$170 million. Earlier in 2005, Swiss investigators froze 150 million francs (HK$1.29 billion) at a UBS branch in Lugano belonging to Harmony Gold, Wiltshire Trading and other companies. On July 24, 2014, ""Variety"" reported that some of the charges have been dropped due to expiring statute of limitations. An appeals hearing is set to take place January 20, 2016. On March 18, 2016 ""Hollywood Reporter"" reported that at the January 20, 2016 appeal Frank Agrama was confirmed acquitted. Five other people, including Paddy Chan Mei-yiu and Katherine Hsu May-chun, were confirmed acquitted."
"Générale described Kerviel as ""not a star"". Kerviel earned a bonus of €60,000 on top of a €74,000 salary in 2006, considered modest in terms of the salaries paid to traders in the financial markets. He had hoped for a €600,000 bonus for 2007 and would have received at least half that amount. The bank states that Kerviel was assigned to arbitrage discrepancies between equity derivatives and cash equity prices, and ""began creating the fictitious trades in late 2006 and early 2007, but that these transactions were relatively small. The fake trading increased in frequency, and in size"". Bank officials"
"changed its name to Belfius. Other healthy components were also sold off and the toxic assets remained in the Dexia Holding. Dexia holding is Europe's largest bad bank. Operating with the help of bank guarantees of the Belgian and French governments Dexia holding is tasked to minimize the losses on its toxic assets. The holding is still generating large losses, which led Belgium and France to inject another €5.5 billion in 2012. Since the beginning of October 2008, the price of KBC shares had dropped by more than half. The turbulence on the international financial markets and the skewed domestic"