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SocGen ex-trader Kerviel faces prison after losing appeal

But appeal court does overturn initial judgement that Kerviel has to repay the 4.9 billion euros in losses he was said to have caused bank.

La rédaction de Mediapart

This article is freely available.

Jerome Kerviel, the former Societe Generale SA (GLE) employee convicted for unauthorized transactions leading to one of the biggest trading losses in history, faces prison after a French court rejected his appeal, reports Bloomberg.

The Cour de Cassation, France’s highest appeals court, today rebuffed Kerviel’s efforts to overturn a 2012 verdict that found him guilty of abusing the bank’s trust, faking documents and entering false data into computers that resulted in a 4.9 billion-euro ($6.8 billion) loss.

The court, however, accepted Kerviel’s civil appeal that had sought to contest the bank’s charge that he was solely responsible for the loss, handing the former trader a partial victory by overturning an order that he repay the amount. Details of the loss will be examined by a court in Versailles.

“We will continue to fight to show that the so-called Kerviel case was in fact the Societe Generale case,” David Koubbi, Kerviel’s lawyer said.

Kerviel, 37, is in Italy after he undertook a 1,400-kilometer walk from Rome to Paris following a brief meeting with Pope Francis on Feb. 19. The timing and details of his incarceration will be determined later.

Societe Generale’s 2008 loss exceeded its corporate-and-investment-banking profit over the six years through 2013. Kerviel was called a “terrorist” by then-Chief Executive Officer Daniel Bouton.

Read more of this report from Bloomberg.