Rogue Trader in $7B SocGen Case Says Boss Watched
Posted Mar 17, 2008 11:36 AM CDT
By Martha Neil
Jerome Kerviel says he used his manager's computer at least one occasion as he racked up more than $7 billion in losses for French bank Société Générale.
Kerviel also told judges considering his bail application that he frequently had his assistant type information about fictitious transactions in SocGen's computer system, the two report. The individuals he describes as being aware of his actions have either denied Kerviel's account or justified their behavior, AFP says.
A bail decision by Paris Appeal Court is expected tomorrow.
"Prosecutors want to keep Kerviel behind bars while investigators complete their probe into the biggest bank trading scam in history," AFP writes. "They have used Kerviel's statement to argue against his release, warning of a risk of 'pressure on witnesses' or of communication between Kerviel and possible accomplices."
More details about the alleged trading scam are discussed in an earlier ABAJournal.com post. Ironically, although Kerviel reportedly may have caused by far the largest trading loss ever racked up by one individual, he apparently sought to make money for the bank.
At least one securities suit has already been filed.