French rogue trader Kerviel released from jail

Rogue trader Jerome Kerviel whose unauthorised deals lost billions for his French bank was released from custody on bail today.

Kerviel has been held in Paris’s grim La Sante prison since February 8 during the investigation into his losses with bank Societe Generale.

Prosecutors said they wanted to keep him jailed to prevent him from speaking with accomplices, if he had any. Kerviel maintains that he acted alone.

His lawyers argued that Kerviel has co-operated with investigators, had shown no signs of wanting to flee France and could in no way hinder the investigation by being released from prison.

“We were expecting this decision, we were hoping for it,” said Kerviel’s lawyer Elisabeth Meyer. “The court listened to us.

“He is going to rest, and we are all going to let him rest,” she said.

Societe Generale did not contest the ruling by a Paris court. Their lawyer Jean Veil called it a “very balanced decision” that will allow a “calm and secure” investigation. He noted the decision came with strict judicial surveillance.

Kerviel ,31, has to hand in his identity card and passport and is forbidden from leaving the Paris region and entering trading floors or stock exchanges.

Societe Generale says it discovered the unauthorised trades by Kerviel the weekend of January 19-20 and spent three days unwinding them on shaky world markets.

It announced it had lost more than €3.8bn in the process.

Although Kerviel has said he acted alone, he also said his bosses at Societe Generale must have been aware of his massive risk-taking, and turned a blind eye as long as he was making money for the bank. Investigators want to determine what Kerviel’s colleagues and superiors may or may not have known about his trades.

At least two people who worked with Kerviel have been questioned and released.

A preliminary internal probe by Societe Generale found no evidence that anyone helped Kerviel hide his deals, or that the trader profited from personal monetary gains. The report said bank officials failed to follow up on 74 warnings about questionable trades.