Jerome Kerviel, the rogue trader who lost £4.17bn at Société Générale (SocGen), has lost the first stage of his appeal against his conviction.
The French employment tribunal’s rejection of Kerviel’s bid for a new expert inquiry on 4 July does not mean the end of the matter however, as the tribunal still has to make its final ruling about the fairness or otherwise of his treatment. This could take many months yet.
Kerviel has been claiming his bosses at SocGen knew what he was doing before his huge losses became evident in 2008. It is an argument made by many other so-called rogue traders down the ages such as UBS’ Kweku Adoboli , Baring’s Nick Leeson and others.
The lack of strong management oversight procedures and effective risk management technology systems, which should alert investment banks if traders go over their limits, is a common failing in all these cases, which just go to show that cultural norms often overcome technological constraints in these matters as traders strive to reach their bonuses.