Rogue Trader or Rogue Bank?

Posted by John Carney, Jul 24, 2008, 3:38pm

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]

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Comments

1

Posted by guest, Jul 24, 2008 4:02PM

Rogue market

2

Posted by Anal_yst, Jul 24, 2008 4:06PM

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

Posted by guest, Jul 24, 2008 4:27PM

go on the offensive

4

Posted by CNote, Jul 24, 2008 4:32PM

So, Jerome's going with the vaunted "I'm rubber, you're glue" defense.

Good luck with alllllll that...

5

Posted by FUNdamental, Jul 24, 2008 4:41PM

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

Posted by guest, Jul 24, 2008 4:43PM

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

7

Posted by Anal_yst, Jul 24, 2008 5:04PM

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

8

Posted by FUNdamental, Jul 24, 2008 5:38PM

@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

Posted by guest, Jul 24, 2008 5:38PM

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

Posted by CNote, Jul 25, 2008 8:49AM

@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

Posted by NotNasser, Jul 25, 2008 9:32AM

Is there now a news organization called "Retuers"?

12

Posted by guest, Jul 25, 2008 9:42AM

@11

Good catch!

13

Posted by guest, Jul 25, 2008 9:42AM

@11

Good catch!

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