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French bank rogue trader charged with forgery

Wednesday, 02 September 2009

French bank rogue trader charged with forgery

Jerome Kerviel, the rogue trader, whom French bank Societe Generale allege caused them to lose 4.9bn euros (£4.3bn; $7.2bn) has been charged with forgery, breach of trust and unauthorized use of the computer.

Societe Generale first reported their losses last year and said that unauthorised deals carried out by Kerviel had brought about the situation. He has been under investigation since then.

Kerviel has defended himself by maintaining that the bank knew about the deals he made and that his superiors turned a blind eye to what he was doing as long as he was making money for the bank. It was only when he lost money that they became concerned.

Kerviel’s trial is not expected to start until 2010.

Senior executive Jean-Pierre Mustier and non-executive director Robert Day have also been under investigation by the French financial watchdog.

Mr Mustier had been in charge of Societe Generale's corporate and investment banking department when Mr Kerviel worked for the bank but he quit his job earlier this month.

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