• 24 Jul 2008 at 3:38 PM

Rogue Trader or Rogue Bank?

By John Carney

The attorney for the alleged rogue trader Jerome Kerviel has decided to go on the offense, highlighting the lack of internal controls at Kerviel’s employer SocGen.
Yesterday Kerveil made his first court appearance in months. After the hearing his lawyer told reporters that his defense would be built upon the decision in July by France’s Banking Commission to fine SocGen 4 million euros for breaches of internal controls.

Kerviel lawyer plans new defense of rogue trader [Retuers]

Comments (13)

  1. 1
    Posted by guest | July 24, 2008 at 4:02 PM

    Rogue market

  2. 2
    Posted by Anal_yst | July 24, 2008 at 4:06 PM

    Haven’t we already determined that it was not, in fact, Kerveil that was responsible for the massive loss, but management (and the lone execution trader tasked with trying to save their asses) who dumped a massive position over 2 days?
    Somewhere back DB had a chart showing exactly this.

  3. 3
    Posted by guest | July 24, 2008 at 4:27 PM

    go on the offensive

  4. 4
    Posted by CNote | July 24, 2008 at 4:32 PM

    So, Jerome’s going with the vaunted “I’m rubber, you’re glue” defense.
    Good luck with alllllll that…

  5. 5
    Posted by FUNdamental | July 24, 2008 at 4:41 PM

    Hey if he shows up in court with some schnitzel and lederhosen they will probly just surrender and name the champs-elysees after him.

  6. 6
    Posted by guest | July 24, 2008 at 4:43 PM

    Will DMS/Guilfoyle be next. That would be a pity.

  7. 7
    Posted by Anal_yst | July 24, 2008 at 5:04 PM

    ahahah Fun, going for the low-hanging fruit today I see (not that I disagree of course)

  8. 8
    Posted by FUNdamental | July 24, 2008 at 5:38 PM

    @anal – I thought the low hanging fruit was his lawyer trying the “france banking commission may have fined them 4 million euro, but my client fined them 7 billion, who would you be more afraid of”.
    But making fun of the french always makes me smile. Vive le guillotine!

  9. 9
    Posted by guest | July 24, 2008 at 5:38 PM

    Anal_yst, I like your posts and think you are smart. I am concerned that you are not aware of “Prospect Theory” and the nature of risk taking by untrained financial professionals. To say that SocGen should have waited is like saying SemGroup should have waited.

  10. 10
    Posted by CNote | July 25, 2008 at 8:49 AM

    @5:38 – what Anal_yst’s point is that Kerveil wasn’t actually the one there when the losses were realized. It was only after SocGen’s announcement, and SUBSEQUENT liquidation of the positions that they got hammered. Had they been able to efficiently liquidate it, rather than have to do it after telling the entire world what they were up to, they’d have probably seen far less loss severity.

  11. 11
    Posted by NotNasser | July 25, 2008 at 9:32 AM

    Is there now a news organization called “Retuers”?

  12. 12
    Posted by guest | July 25, 2008 at 9:42 AM

    @11
    Good catch!

  13. 13
    Posted by guest | July 25, 2008 at 9:42 AM

    @11
    Good catch!

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