Friday, September 23, 2016

Jerome Kerviel sentenced in appeal to pay 1 million euros to the Société générale – The World

The World | • updated | By

Jerome Kerviel and his lawyer David Koubbi in  Paris in January.

Jerome Kerviel was sentenced on appeal on Friday 23 September, to be paid 1 million euros in damages to Société générale. The former trader has been recognized ” partly responsible “, by the court of appeal of Versailles, of the damage caused to the bank by its manoeuvres stock fraud.

The trader had already been punished in criminal proceedings in 2010 to five years in prison, including two suspended, for maneuvers trading fraudulent have caused, in 2008, 4.9 billion of losses to his former employer. The Court of cassation has confirmed in 2014, this conviction for abuse of trust, forgery and fraud. But she has broken the civilian component who are required initially to pay back those losses dizzying.

To understand everything : the case of The Kerviel in 3 questions

In thirty pages, the judgment of the court of appeal of Versailles, replace each in its responsibilities : to Jérôme Kerviel, the entire criminal offence as established in the tribunal correctionnel and the court of appeal of Paris ; the Société générale, the largest share of the civil responsibility, since the failures of its controls have contributed to the severity of the harm that she has suffered. Each paragraph is written in a manner that does not leave any ambiguity of interpretation by one or the other of the parties which are opposed in a war, judicial and especially media without thank you.

  • “vulnerabilities” that Jérôme Kerviel has ” exploited “

about ” defaults ” of the bank, the court observes that they ” do not testify to negligence point, but choice managerial that were open to an employee with malicious intent such as Jerome Kerviel a wide field of action where he could develop his conduct tortious “.

” Formed within the structures of the bank, Jerome Kerviel had spotted the flaws, which he then exploited to design and to cover his fraudulent activities. This is his personal career within the Société générale, including the middle office, which gave him a knowledge of very thin systems, which he then used to develop and conceal its actions. “

  • control systems ” gap “

But, says the court, ” whatever the cunning and determination of the perpetrator, or the sophistication of the processes employed, such damage could not have been achieved without the eminently deficient control systems of the Company-general, that generated a degree of vulnerability high. “

” This organization failed to deliver and this accumulation of breaches, ” continued the judgment of the court, have enabled the commission of the crime and delayed their detection. “They also ” had a causal role is critical in the occurrence and development of damage up to a critical threshold. It is as well as was able to create a better situation at all point exceptional, both by the extent of the damage and the risks that it poses to the economy as a whole. “

” therefore, concludes the judgment, if the offences of criminal committed by Jérôme Kerviel have directly contributed to the production of the damage suffered by the Company in general, the offenses multiple violations by the bank have had a major role and factor in the causal process of the very significant harm that has resulted to it. “

  • A sum of money to a human scale

” The struggle continues “ and the decision of the court of appeal ” gives me the energy to continue [they] “combat” , responded promptly, the ex-trader, assailed by the journalists. the ” The court has rendered for 99.98 % of the sum of “ caused by Jerome Kerviel, has welcomed his lawyer, David Koubbi. One of the lawyers of the Société générale, Jean Veil, has welcomed a decision ” quite satisfactory, “.

In condemning Jérôme Kerviel to pay € 1 million on $ 4.9 billion of prejudice, the court emphasizes that the bank must assume in the eyes of society the cost of his own fault. But in asking the ex-trader to pay an amount to scale the ” human “, she returns to the simple status of a person sentenced for breach of trust. An ex-trader, nothing more than an ex-trader who has abused the trust of those who employed it, and not a martyr for the banking system.


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