Today, an Appeals Court in France upheld the conviction of Jérôme Kerviel, a former trader with the French bank Société Générale, sentenced him to serve time in prison and ordered him – rather symbolically I assume – to pay 4.9 billion Euros to the bank by which he had been employed.
What did Jérôme Kerviel do?
Jérôme Kerviel worked as a trader at Société Générale. Beginning in 2006 and up to 2008 he was engaging in high-risk trades which the bank later said were “unauthorised” (although they didn’t mind reaping the profits of these trades as long as they went fine). He exceeded his risk limits and tried to conceal his activities. When Société Générale finally “discovered” what had been going on, they closed the trades in January 2008 at an alleged loss of 4.9 billion Euros.
What should Jérôme Kerviel have done instead?
He should have opened a bank himself before losing several billion Euros, because then he would have been rewarded for this reckless behaviour with a taxpayer-funded bailout.