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Disgraced trader Jerome Kerviel ordered to pay €1m in damages (down from €4.9bn) | Disgraced trader Jerome Kerviel ordered to pay €1m in damages (down from €4.9bn) |
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A French court has cut the civil damages owed by former trader Jerome Kerviel from 4.9 billion euros ($5.5 billion) to 1 million euros ($1.1 million). | A French court has cut the civil damages owed by former trader Jerome Kerviel from 4.9 billion euros ($5.5 billion) to 1 million euros ($1.1 million). |
The court in Versailles, outside Paris, ruled Friday that Kerviel was "partly responsible" for huge losses suffered in 2008 by the bank Societe Generale through his reckless financial trades. | The court in Versailles, outside Paris, ruled Friday that Kerviel was "partly responsible" for huge losses suffered in 2008 by the bank Societe Generale through his reckless financial trades. |
Kerviel was sentenced to three years in prison for nearly bringing down the bank with the losses, just before the financial market meltdown in 2008. | Kerviel was sentenced to three years in prison for nearly bringing down the bank with the losses, just before the financial market meltdown in 2008. |
The 39-year-old has been found guilty of forgery, breach of trust and fraudulent computer use for covering up bets worth 50 billion euros — more than the market value of the entire bank at the time. | The 39-year-old has been found guilty of forgery, breach of trust and fraudulent computer use for covering up bets worth 50 billion euros — more than the market value of the entire bank at the time. |
Kerviel had amassed €50 billion in stock market bets using fake hedges and false documents. The French bank unwound the positions at a loss of €4.9 billion during three days in January 2008 after uncovering the trades. | |
Kerviel claims bank bosses was fully aware of his trades and has cast himself as the victim of a corrupt financial system. | |
At the time Daniel Bouton, chief executive described Kerviel as a “terrorist.” | |
He served five months of his three-year sentence for abuse of trust. Then in June, an employment tribunal awarded Kerviel half a million dollars for unfair dismissal. Two weeks later, a prosecutor criticised Societe Generale for “multiple, long-standing” failings. |