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Alternative Market Briefing

What is happening to Kerviel now?

Monday, June 30, 2008

Matthias Knab: The investigations around the scandal dealer Jérôme Kerviel and the bank Société Générale are completed. Opalesque is looking at the most important questions and answers related to this spectacular case.

Was Kerviel acting on his own? Jérôme Kerviel will be in all probability the only accused in the criminal procedure. The accusation could by falsification and use of falsified documents, breach of trust and illegal penetration into a computer system. These are at least the aims of the current nvestigations. The public prosecutor's office rejected the thesis, according to which Kerviel had not alone acted. His assistant Thomas Mougard was involved in about every 8th transaction and congratulated him on 31 December 2007 by email to a profit of 1.4 billion euros. The prosecutor is not recognizing any complicity.

What are the results of the investigations? Kerviel was the only one in a team of eight people at the SG trading floor who "with criminal energy" to maximise his profits and bonuses. He bought partially up to 6000 derivative contracts per day. He was not the only one to go beyond a trade limit of 125 million euros for the team. But he was masking his transactions complex with fictitious and unauthorized counter transactions.

For example, on in March 2007 he entered unsecured positions of over 30 billion Euro. In January 2008 this was swelling to 50 billion Euro. He was covering up by being the first to come int......................

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