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Societe Generale trader Kerviel jailed for three years | Societe Generale trader Kerviel jailed for three years |
(about 21 hours later) | |
Former Societe Generale trader Jerome Kerviel is facing three years in jail after being convicted by a Paris court. | Former Societe Generale trader Jerome Kerviel is facing three years in jail after being convicted by a Paris court. |
Kerviel was told he must also repay the damages of 4.9bn euros ($7bn; £4bn) which the bank said it lost through his risky trades. | Kerviel was told he must also repay the damages of 4.9bn euros ($7bn; £4bn) which the bank said it lost through his risky trades. |
He was found guilty of forgery, unauthorised computer use and breach of trust. | He was found guilty of forgery, unauthorised computer use and breach of trust. |
Kerviel's lawyer said they would appeal against the conviction. Kerviel will remain free until the appeal is heard. | |
The total sentence given was five years in prison, with two years suspended | The total sentence given was five years in prison, with two years suspended |
'Disgusted' | 'Disgusted' |
The trial earlier this year was over charges that he bet 50bn euros of SocGen's money without the bank's knowledge. | The trial earlier this year was over charges that he bet 50bn euros of SocGen's money without the bank's knowledge. |
Obviously the $4.9bn repayment is a totally theoretical amount because there's no way Mr Kerviel will be able to pay it. | Obviously the $4.9bn repayment is a totally theoretical amount because there's no way Mr Kerviel will be able to pay it. |
But the bank will be satisfied because it does establish very clearly the principle of Mr Kerviel's guilt. | But the bank will be satisfied because it does establish very clearly the principle of Mr Kerviel's guilt. |
The court seems to have discounted completely the argument put forward by Kerviel's defence, that the bank knew of his extravagant trades and turned a blind eye as long as he was making money. | The court seems to have discounted completely the argument put forward by Kerviel's defence, that the bank knew of his extravagant trades and turned a blind eye as long as he was making money. |
"Kerviel knowingly went beyond his remit as a trader," presiding judge Dominique Pauthe told the court. | "Kerviel knowingly went beyond his remit as a trader," presiding judge Dominique Pauthe told the court. |
Kerviel's defence was the bank knew about the risk-taking and was content while he was making profit, with lawyer Olivier Metzner saying his client was "disgusted" about the ruling. | Kerviel's defence was the bank knew about the risk-taking and was content while he was making profit, with lawyer Olivier Metzner saying his client was "disgusted" about the ruling. |
The court had judged that the bank "was responsible for nothing, not responsible for the creature that it had created", he added. | The court had judged that the bank "was responsible for nothing, not responsible for the creature that it had created", he added. |
'Catastrophe' | 'Catastrophe' |
The trial saw Kerviel's former bosses and colleagues line up to testify against him. | The trial saw Kerviel's former bosses and colleagues line up to testify against him. |
SocGen's lawyer, Jean Veil, accused Kerviel of "duplicity" for reassuring his bosses that nothing was wrong while racking up the huge losses. | SocGen's lawyer, Jean Veil, accused Kerviel of "duplicity" for reassuring his bosses that nothing was wrong while racking up the huge losses. |
And the bank's president and chief executive at the time of the losses, Daniel Bouton, called the trading scandal a "catastrophe". | And the bank's president and chief executive at the time of the losses, Daniel Bouton, called the trading scandal a "catastrophe". |
But Kerviel's lawyers argued that the failure was more than incompetence, and that there was a culture of rule breaking at SocGen where management deliberately turned a blind eye in the hunt for profit. | But Kerviel's lawyers argued that the failure was more than incompetence, and that there was a culture of rule breaking at SocGen where management deliberately turned a blind eye in the hunt for profit. |
The bank was fined 4m euros by French regulators for failures in those systems following the scandal. | The bank was fined 4m euros by French regulators for failures in those systems following the scandal. |
'Timing' | 'Timing' |
The Kerviel affair has dealt a blow to reputation of one of France's most prestigious financial institutions, said BBC business reporter Mark Gregory, but added that in some respects the fall-out had been less than might be expected. | The Kerviel affair has dealt a blow to reputation of one of France's most prestigious financial institutions, said BBC business reporter Mark Gregory, but added that in some respects the fall-out had been less than might be expected. |
Our correspondent says this was due to the timing. | Our correspondent says this was due to the timing. |
Jerome Kerviel's dealings are now often seen as footnote to the much larger global financial panic that followed the collapse of the US investment bank Lehman Brothers a few months later, he says. | Jerome Kerviel's dealings are now often seen as footnote to the much larger global financial panic that followed the collapse of the US investment bank Lehman Brothers a few months later, he says. |
The few billion dollars lost by SocGen pale besides the hundreds of billions of dollars thrown away through risky dealings in America's sub-prime mortgage market, our correspondent adds. | The few billion dollars lost by SocGen pale besides the hundreds of billions of dollars thrown away through risky dealings in America's sub-prime mortgage market, our correspondent adds. |