.
AFP – French judges on Thursday questioned trader Jerome Kerviel for probably the last time as they wrap up a year-long probe into the biggest rogue trading scandal in history and prepare for trial.
Kerviel and his assistant have been charged over the staggering losses of 4. .9 billion euros (7.
The 32-year-old junior trader has insisted his managers knew of his actions and kept silent as long as he was making good returns.
One of France’s three biggest banks, Societe Generale shocked the financial world when it unveiled mammoth losses in January last year and has since said Kerviel was a rogue who went to great lengths to conceal his dealings. I hope that this is not the case because I have a lot more to say.
I understand that this will be my last hearing, Kerviel told AFP. His assistant, Thomas Mougard, 24, was charged in August with complicity to introduce false data into a computer system.
Kerviel is accused of breach of trust, fabricating documents and illegally accessing computers.
Kerviel’s lawyers argue that their client is a scapegoat and complained that judges relied too closely on documents provided by Societe Generale.
Both are free on bail pending a trial that is not expected to begin before the end of the year at the earliest.
France’s banking regulator fined Societe Generale four million euros in July for grave deficiencies in its internal controls that allowed the situation to go undetected for so long.
In a series of rulings made last month, French magistrates heading the pre-trial investigation turned down defence requests for an additional probe to establish whether the bank turned a blind eye to his actions. Five bank employees were fired and two others resigned over the affair.
The banking commission also issued a formal warning to Societe Generale for failing to prevent the losses.
Described by workmates as a quiet, unassuming trader, Kerviel surrendered to police on January 26, two days after the bank revealed the losses.
The losses were incurred when the bank was forced to unwind more than 50 billion euros of unauthorised deals Kerviel is said to have made.
France Рfraud Рinsider trading РJ̩r̫me Kerviel Рjustice РSociete Generale
.
Societe Generale chairman Daniel Boutin described Kerviel as a terrorist and fraudster who had betrayed the confidence of his managers