Former Societe Generale trader guilty of "breach of trust." Five-year sentence — two of it suspended — reportedly handed out, along with staggering €5 billion fine.
The SocGen trading scandal first came to light in early 2008 when the bank shocked markets with the news that Kerviel had placed €50 billion of bets on stock-market futures — more than the entire market capitalization of the bank at the time.
Unwinding those bets in a hurry resulted in losses of €4.9 billion for the firm and is also thought to have contributed to a slump in global equity markets. Kerviel himself wasn’t accused of profiting directly from his trades.
Kerviel’s lawyer Olivier Metzner reportedly said the former trader, now a computer consultant, will appeal the decision. French media reported that Kerviel now earns €2,300 a month in his new job — so assuming he had no other expenses, he could pay off the debt in just over 177,000 years.
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