The Daily Caveat is written by Michael Thomas, a recovering corporate investigator in the Washington, DC-area. [More]
Got scoops? Comments? Send'em on, care of
4/20/2008
Daniel Bouton Out at SocGen
SocGen Chief Probed on Rogue Trading
2/05/2008
Societe Generale Chairman Called Fraud Loophole (Says D'oh!)
Daniel Bouton Out at SocGen
Well, not quite. Bouton will close out 15 years as the Societe Generale's chief executive, but will retain his position as Chairman of the board. Former SocGen CFO, Frederic Oudea will step in to the role of CEO. He has most recently served as deputy chief executive.
And Jerome Kerviel? Free on bail...
--MDT
4/15/2008
And Jerome Kerviel? Free on bail...
--MDT
Labels: Daniel Bouton, Jerome Kerveil, Jerome Kerviel, Societe Generale
SocGen Chief Probed on Rogue Trading
While former trader Jerome Kerviel is a free man, the trouble for his former employer may be just starting. Chief executive, Daniel Bouton is being probed by the French parliament (though Bouton himself has been touting a brighter side). If you feel like you need a re-cap on the whole SocGen affair, try this newly published Fortune article, which provides a fine summary.
Meanwhile, stateside, FINRA issues new guidelines to prevent further Kerviel-style rogue trading. Good thing too, as a newly released report from the Association for Financial Professionals indicates that, while the scale may be somewhat smaller, fraud is hardly a problem unique to SocGen. Then again, maybe it's just hormones.
-- MDT
Meanwhile, stateside, FINRA issues new guidelines to prevent further Kerviel-style rogue trading. Good thing too, as a newly released report from the Association for Financial Professionals indicates that, while the scale may be somewhat smaller, fraud is hardly a problem unique to SocGen. Then again, maybe it's just hormones.
-- MDT
Labels: Daniel Bouton, FINRA, Jerome Kerviel, Societe Generale
2 Comments.
HI Michael,
I still have a problem with the use of the word fraud and "rogue trader" when neither Kerviel at Soc Gen nor Dudley at MF Global were ever going to be able to keep any money for themselves. They were just trying to repair or enhance their reputation with their firms within a very lax control environment. They were taught by their mentors that this is how you can do it.
I still have a problem with the use of the word fraud and "rogue trader" when neither Kerviel at Soc Gen nor Dudley at MF Global were ever going to be able to keep any money for themselves. They were just trying to repair or enhance their reputation with their firms within a very lax control environment. They were taught by their mentors that this is how you can do it.
Hi Francine,
Good to hear from you and thank you for your thoughts. I take your point, but wouldn't Kerviel have been bonused relative to his successful trading?
Even if Kerviel stood to gan nothing, I think "rogue" applies well enough to someone who thwarted internal controls, lax though the may have been, to enact trades, irrespective of the motive behind the act.
That asidee, your comment definitely speaks to why some have related to Kerviel as more Robin Hood than robber and to why he's not currently cooling his heels in a French jail under more serious charges.
Take care,
-- MDT
Post a Comment
Good to hear from you and thank you for your thoughts. I take your point, but wouldn't Kerviel have been bonused relative to his successful trading?
Even if Kerviel stood to gan nothing, I think "rogue" applies well enough to someone who thwarted internal controls, lax though the may have been, to enact trades, irrespective of the motive behind the act.
That asidee, your comment definitely speaks to why some have related to Kerviel as more Robin Hood than robber and to why he's not currently cooling his heels in a French jail under more serious charges.
Take care,
-- MDT
Links to this post:
Societe Generale Chairman Called Fraud Loophole (Says D'oh!)
Embattled Societe Generale Chairman, Daniel Bouton (here's an excellent profile from the FT) literally wrote the book on French corporate standards and in said book criticized "purely market-driven risk controls." This becomes somewhat embarrassing when your own firm gets caught in an audacious scandal based on a reliance on those same inadequate controls.
Via The Guardian (great piece if you are interested in the regulatory angle).
-- MDT
Via The Guardian (great piece if you are interested in the regulatory angle).
-- MDT
Labels: Daniel Bouton, Jerome Kerveil, Jerome Kerviel, Societe Generale
Create a Link