"Rogue Trader" Gets 3 Years, $6.7B Fine

The “rogue trader” who cost his former employer, French bank Société Générale, $7.1 billion through a series of high-stakes bets that leveraged fictitious transactions outside his trading limit was sentenced today to 3 years in prison and a “symbolic” $6.7 billion fine.

A spokeperson for Société Générale said the fine was only a gesture and that they did not expect to get paid.

In 2008, Jérôme Kerviel drew big headlines with his escapades. Throughout the ordeal he maintained that he was just trying to make money for his firm and that his bosses silently approved of his methods as long as they were profitable.

Rogue Trader at Société Générale Gets Jail Term [NYT]

PREVIOUSLY
Bank Says It Has Lost $7 Billion, Blames “Rogue Trader”

Comments

Edit Your Comment

  1. amgriffin says:

    “Throughout he maintained that he was just trying to make money for his firm and that his bosses silently approved of his methods as long as they were profitable.”

    I absolutely believe this assertion. In fact, I believe this is how it is with most corporations.

    • AngryK9 says:

      I was thinking the same thing.

    • MaxH42 thinks RecordStoreToughGuy got a raw deal says:

      Yes, but apparently people still need to learn that 1) that is not a “get out of jail free” card, and that 2) bosses will deny approving it if you get caught, which is why they ask/hint at you doing it for them.

      • DerangedKitsune says:

        Exactly. Too many bosses are like “I’ll look the other way as long as you make it profitable to me. But if you cost me money, I’ll be one of the first ones lined up to give them your head.”

  2. AI says:

    “through a series of high-stakes bets that leveraged fictitious transactions”

  3. Mcshonky says:

    The more you steal, the less time you do.
    Ask all the guys who stuck up a mini mart that are doing 5 to 10.

    • savvy9999 says:

      so true.

      I also enjoy the stories of celebrities doing “symbolic” time (=minutes) in jail for multiple DUIs/drug offenses/parole violations, while common folk are left to rot.

      There is them, and there is us.

    • kursk says:

      It’s a case of if you steal really big money, you can afford really big lawyers who happen to have really big connections. Actually it’s not really connections that get people like this off it’s about time. The longer you take and the more work it is to try a case the more likely you are to get off. It’s really about muddying the waters if you are guilty.
      My wife used to be a lawyer. The firm she worked with usually uses the standard of if they can’t afford a long trial, settle. If they are innocent, go before a judge and argue there since there’s a good chance he’ll see you’re innocent. If you’re guilty and can afford it, take it to jury and get muddy. All you really have to do is get one or two jurors on your side.

    • craptastico says:

      keep in mind this is in France. i have no idea what kind of time a quickie mart robber would do there, but it’s connceivable that their prison terms are more lenient in general

    • guaporico says:

      Generally those are armed robberies, which carries a considerably higher penalty than just robbing someone.

    • OSAM says:

      “The more you steal, the less time you do.
      Ask all the guys who stuck up a mini mart that are doing 5 to 10.”

      Yeah, because manipulating a system already in place is directly and totally equivalent to point a deadly weapon at someone.

  4. ALP5050 says:

    Who??

  5. lymer says:

    “symbolic” $6.7 billion fine.

    This is the dumbest thing I have ever read. I’m so glad their legal system over there is taking things seriously.

    • Griking says:

      “don’t expect to be paid”

      Do they expect that any of it will be paid? Will it be considered a debt against his credit report? How much does it cost to send a 6.7 billion dollar debt to collections?

  6. mrbofus says:

    Why is there a picture of Paris Las Vegas [and other hotels] for the article?