SocGen manager sues Kerviel

22 April 2008

Societe General rogue trader Jerome Kerviel may be sued by his bosses, Le Figaro reports.

Mr Kerviel's line manager, Eric Cordelle, has entered an application in the French courts to claim damages against the junior trader.

Should the application be successful, other SocGen managers could also claim due to the $8 billion lost by the fraud - which involved the trader taking unauthroized positions and then falsifying documents to cover his tracks.

The "moral harm" suffered by Mr Cordelle in the fallout from Mr Kerviel's actions was cited by the manager's lawyer as the reason for the claim.

For his part, Mr Kerviel has previously said in court that his trades were sanctioned by bosses at the French bank - so long as he was making a profit.

A previous internal SocGen investigation also revealed that the bank had ignored a total of 76 alerts over the trader's activity prior to the multi-billion loss being reported.

The bank's chief executive, Daniel Bouton, has been sacked since the trades came to light earlier this year.

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