SocGen faces 2.2 bln tax break refund over its responsibility in 'rogue trader' losses


In a ruling by the Versailles court of appeal on Friday, French bank Société Générale was found to have been in large part responsible for the 4.9 billion euros in losses attributed to the reckless trades of its so-called “rogue trader” Jérôme Kerviel in 2008. The court ruling concerned Kerviel’s appeal against the damages he was required to pay the bank, which until now was fixed as the entire sum of the losses, and which it reduced to 1 million euros. Mediapart economics and finance correspondent Martine Orange analyses here the many consequences of the ruling, not least of which is the demand that the bank now pay back a 2.2-billion-euro tax break it was granted as a result of the sums lost.

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It required more than eight years before the French judicial system, after two trials and two appeal hearings, finally admitted on Friday to what had appeared evident from the start of the Jérôme Kerviel affair, namely that the presentation of the Société Générale as a victim in the so-called “rogue trader” case was pure fiction.