201006.23
0

SocGen Seeks 4.9 Billion Euro in Compensation Claim

The French bank Société Générale SA has told a French court that it wants €4.9 billion in compensation from former employee Jerome Kerviel, who will fact up to five years in prison and a fine of €375,000 if convicted of charges of breach-of-trust, forgery, and entering false data into computers.   Under the French legal system, Société Générale has the right to demand damages as the victim. The amount claimed by Société Générale are the losses from what the bank says were unauthorised trades made by Kerviel.

The court has heard from Kerviel’s direct supervisor, Eric Cordelle, that the trading desk for Kerviel’s team frequently exceeded its trading limits. Cordelle also revealed that he had neither the resources or tools to monitor individual traders’ activities.