Kerviel Crisis

Dear reader,

I would like to speak about one French and Financial affair.

In January 2008, Jérôme Kerviel was accused of being the only responsible of Société Générale’s money losses.

Indeed, the Société Générale bank had lost 4,82 billion of Euros because of bad decisions about futures contracts with shares index.

Kerviel had made these bad decisions and became the responsible of the worst french financial history of our century.

Nevertheless, one question worried financial people: “Why this error became an accusation? Is it not the trader’s job to take risks on financial market?”

I agree with this questioning because a trader has to take risks in order to succeed but sometimes it failed. I think that handle a lot of money can be the consequence of losing control.

But the main problem in this affair is that Kerviel had certainly taken advantages of his professional situation.

In the meanwhile of his case, Jérôme Kerviel write his biography in order to try to explain his acts. He was working for a company as computer consultant.

Yesterday, the verdict has been pronounced. The ex trader sentenced to 3 years imprisonment and he has to refund 4,9 billion Euros.

 We can see here that the refunding is totally symbolic!

I think that the sentence is very hard for Jérôme Kerviel because he has to pay for all the mistakes of the financial world. The trader qualify his job as prostitute, it shows here his feelings about the affair.

At the end, I think that Kerviel is not innocent but he can’t be the only responsible in this financial history.

The foreign press juges that the sentence is too excessive.

Trader can be the best as the worst and the sentence is quit hard.  

Is Kerviel still a victim in this affair? I suppose, no body can have the correct answer.

Regards,

Pauline

Source:

http://www.lesechos.fr/investisseurs/actualites-boursieres/020839136828.htm
http://www.lefigaro.fr/actualite-france/2010/06/08/01016-20100608ARTFIG00768-de-l-affaire-kerviel-au-proces-de-la-societe-generale.php
http://www.lavoixdunord.fr/stories/image460x00/mediastore/VDN/France_Monde/A2010/M10/_101004-kerviel-afp.jpg
http://www.lepoint.fr/images/2010/10/05/174345-92933-jpg_72208.jpg