For the present, the French Rogue Trader,Mr.Jerome Kervial seems to have escaped from the ‘fraudulent charges’ for his role in the U.S.$ 7 BILLION losses at the French Bank giant, Societe Generale.
FORMAL INVESTIGATION; However, the Judges placed him under formal investigation . He has been ordered not to communicate with the Bank’s employees or to work in any financial services capacity until the case was solved. This does not mean that the investigations would automatically lead into a trial of him. Prosecutor Jean Claude Marin said that the trader had admitted to carrying out a certain number of acts to conceal reckless positions o the market,but, pleaded not with an ulterior motive to profit personally from the financial deals. Perhaps, this went in favor of him in the judge’s rejecting his being charged from gross breach of trust and attempted frauds. The prosecutors have filed an appeal against his release from the Police Custody.
WHAT NEXT; Now the attention has turned against the Bank itself with allegations that a board member was guilty of insider-trading may be be involved in the scandal. As reported earlier, about 100 bank’s shareholders filed a suit for insider trading and manipulation of share prices after the market regulator ‘AMF’ had revealed that a board member had sold shares worth U.S.$122 million on 9th Jan, 008. The issue acquired further political overtones with the French President, Nicholas Sarkozywarning that there must be consequences for those responsible for the scandal. Although the offer of the Chairman of the Bank, Mr.Daniel Boulan for resignation was rejected, he is still under the fire and would have to answer lot of questions on the scandal.
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