Jerome Kerviel Ordered To Pay SocGen $6.8 BILLION And Spend Three Years In Prison

kerviel

So-called rogue trader Jerome Kerviel has been sentenced to three years in prison, and has been ordered to pay back his old firm $6.8 billion.

His crime: going above his trading limits (he claims with the approval of his superiors).

Either way, it’s also widely believed that much of the losses were the result of SocGen’s disorderly and panicked liquidation of his position, rather than the position itself.

As Nassim Taleb would say, the situation revealed the bank to be not very robust.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.


Tagged In

clusterstock-us