Rogue trader goes on trial

ROGUE financial trader Jerome Kerviel goes on trial in Paris today accused of risking billions of his bank’s money in trades that led to massive losses.

At the time, more than two years ago, the hit taken by Societe Generale was considered history’s biggest trading fraud, but it was soon dwarfed by the global financial crisis, the fall of Lehman Brothers and the Bernard Madoff multi-billion-dollar Ponzi scheme.

Kerviel has already laid out his defence in a book, casting himself as an everyman who got carried away, a scapegoat for the bank, the victim of an out-of-control banking system.

The former futures trader’s defence contends his supervisors were aware of his risks but did not stop them as long as he was making money for Societe Generale. The bank denies that claim.

Kerviel is charged with forgery, breach of trust and unauthorised computer use. He faces up to five years in prison if convicted.

The trial is expected to last until the end of June as questions abound, including how Kerviel managed to cover up his risky trading for so long.