Saturday, 26 January 2008

Jerome Kerviel: Societe General must have known

It has been hard to miss the €4.9 billion fraud of Jerome Kerviel. Obviously, this is a huge deal and an enormous amount of money that has been lost in speculation on the market. When this secret came up to the surface it shook the french bank, and while probably affect it long-term credibility, and thereby its business.

However, I find it impossible to believe that this was not known by the bank until now. There must have been several, both external and internal, control systems. The bank claims his background in backoffice functions made him able to avoid being detected by these control systems.

Or is he just a scape goat for a period of questionable investments and decision from the french bank?

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