Rogue trader gets a break

Societe
Generale says it will not demand that rogue trader Jerome Kerviel pays the full
$7 billion in damages awarded by French courts.

Kerviel
was ordered to repay the money after being found guilty of losing the money
through unauthorised trading while employed by the bank.

He
was also ordered to serve a three-year jail term.

But
the bank says it does not expect Kerviel to be responsible for repaying the
full amount.

“There
is no question of demanding such sums from one single man,” said Societe
Generale spokeswoman Caroline Guillaumin, speaking to a French radio station.

“The
bank is completely open to finding another solution which is in the interests
of our shareholders and employees as well as taking into account Jerome Kerviel’s
situation.”

On
the basis of his current earnings, Kerviel would need about 180,000 years to
reimburse to Societe Generale in full.

Even
if this is obviously unachievable, Kerviel could be left with the equivalent of
a living wage for the rest of his life, any exceeding amount being taken directly
from his salary or pension.

Earlier
Kerviel told Europe 1 radio he was “crushed” by the French court’s
decision to jail him for three years

In
his first comments since being sentenced earlier this week, he claimed he was
being made a scapegoat for the massive losses incurred.

He
was found guilty of forgery, breach of trust and unauthorised computer use.

Kerviel’s
lawyer said he would appeal against the conviction. He will remain free until
the appeal is heard.

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