French trader to pay huge fraud damages

Jerome Kerviel jailed for three years for his role in major trading scandal
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Former Societe Generale trader Jerome Kerviel was sentenced to three years in jail by a Paris court on Tuesday for his role in a trading scandal and ordered to pay the French bank 4.9 billion euros ($6.8 billion), Reuters reports.
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The verdict came as a victory for SocGen, which always maintained Kerviel acted alone and without the sanction of his managers at the bank.
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SocGen had sought payment of damages for the money it lost unwinding the trader's risky market bets in 2008.
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Kerviel's lawyer Olivier Metzner said he would immediately appeal the verdict, which he said was 'senseless' and cleared the bank of all blame.
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Kerviel was given a total prison sentence of five years, two years of which were suspended.
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SocGen's lawyer Jean Veil anwers a journalist's question at the end of the verdict.
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The payment to SocGen equates to 3.2 percent of France's central government deficit for 2010, the GDP of Monaco or 16 percent of the French bank's market value.
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Kerviel is currently paid 2,300 euros a month as a technology consultant.
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A SocGen spokeswoman said the amount awarded showed clearly 'the exceptional damage suffered by the bank and its employees.'
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In sentencing, the judge told Kerviel knew exactly what he was doing in overstepping his remit and that he sought to hide his trading positions.
Wed 06 Oct 2010 04:15 PM GST
Last Updated: Mon 23 Jan 2017 04:38 PM GST