The bank hasn't exactly put the Jerome Kerviel trading scandal behind it (still no trial, potential civil suits still loom) but it appears that Societe Generale is in no danger of breaking up or breakding down. In this economy just breaking even looks pretty good. A $2.5 billion dollar profit looks even better.

--MDT

Labels: Jerome Kerveil, Soc Gen

His days as a folk hero passed, his time as a nefarious white collar rogue almost forgotten in the wake of other scandals, Jerome Kerveil is still waiting for his day in court and any conclusion could still be a year or more away.

-- MDT

Labels: Jerome Kerveil, Societe Generale

And the name is Thomas Mougard, the 24 year old former assistant to Jerome Kerviel. He is accused of aiding in the scheme that allowed Kerveil to make billions of dollars in financial moves without Soc Gen being the wiser. Kerviel himself remains free at the moment. As for Mougard, well you know what they say about how stuff rolls down hill, right?

-- MDT

Labels: Jerome Kerveil, Societe Generale, Thomas Mougard

Report says Soc Gen unaware of rogue trades. Kerveil looks nervous.

-- MDT

Labels: Jerome Kerveil, Societe Generale

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

Labels: Daniel Bouton, Jerome Kerveil, Jerome Kerviel, Societe Generale

French authorities are busy hunting Jerome Kerviel's accomplices and it looks like they've stumbled upon someone of interest.

An unidentified employee from a Societe Generale subsidiary has been taken into custody and the bank's HQ has been subject to a search. This is the second such individual to be picked up.

The first, Moussa Bakir, arrested last month based on instant message exchanges he had with rogue trader, Jerome Kerviel. Bakir was promptly released after a day or so of sweating by French police.

We don't have a name yet for this new individual, but it is sure to come our in short order. Here's the latest update on SocGen via Bloomberg.

-- MDT

Labels: Jerome Kerveil, Jerome Kerviel, Mousa, Societe Generale

This time from a senior Fimat executive who confirmed for the FT that their firm ( a Soc Gen subsidiary) had been investigating Jerome Kerviel's trades months earlier than Societe Generale's public announcement. In September Fimat began digging on Kerviel friend, Moussa Bakir including commissions paid to Bakir as the result of several of Kerviel's trades. See Reuters for more info.

-- MDT

Labels: Fimat, Jerome Kerveil, Jerome Kerviel, Moussa Bakir, Societe Generale

The U.S. regulator is planning a look at the suspicious stock dumping by key Societe General shareholder, Robert A. Day.

Day has stated that he has not yet received a formal notice of inquiry from the SEC, but he is already the subject of a lawsuit in France, brought on behalf of minority shareholders of Societe Generale.

Day has previously suggested that his parting with the stock was due to the recent sub prime mortgage market woes the timing, fortuitous given SocGens's subsequent revelations, has certain raised eyebrows about who knew what when.

-- MDT

Labels: e, Jerome Kerveil, Jerome Kerviel, Robert Day, Societe Generale

Best line: "I got a bit carried away."

-- MDT

Labels: Jerome Kerveil, Jerome Kerviel, Societe Generale

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

Labels: Daniel Bouton, Jerome Kerveil, Jerome Kerviel, Societe Generale

That is, if there are any... No one seems certain, just yet.

-- MDT

Labels: Jerome Kerveil, Jerome Kerviel, Societe Generale

Jerome Kerviel, under police interrogation, apparently had much to say about his bosses at Societe Generale - most notably, that despite his obfuscation of unapproved trades, by rights they should have without question known what he was up to. And thus far authorities seem to be taking his account seriously.

There's a pretty good recap of the whole he said/they said right here. And if you're curious about what exactly Kerviel was saying while under the hot lights of Gaullic justice? Here's a collection of the direct quotes you crave (translated from the French, of course), courtesy of The Independent, UK:

• "I can't believe that my superiors were not aware of the kinds of sums that I was committing. It is impossible to generate such profits with small positions."

• "That's what led me to believe that, as long as I was making a profit, my bosses would close their eyes to the methods and amounts I used ... With normal activities, with normal commitments [of cash], no trader could generate so much money."

• "Not seen, not caught. If you are caught, you are hanged."

• "What gave me my profits was the real position and as soon as I let my fictional position fall, my balance would be adjusted accordingly..."

• "As long as we earned money and things weren't too obvious, as long as things could be arranged, nothing was said."

Ass-covering? No doubt. Untrue? Mmmm... Harder to say. Kerviel also told authorities that his illicit trades started much earlier than had been previously indicated. He claims to have begun hiding his market moves as far back as 2005, with cumulative profits of more than $2 billion. Kerviel even stated that some of his loss taking positions were intentional - designed to distract from his towering market genius.

Apparently all this fuss has made Kerviel a bit of a folk hero in some corners of France. Many have glommed on to the notion that Kerviel is merely a scapgoat for bank mismanagement. He's been called the James Bond of SocGen or even the Che Guevara of Finance. There are t-shirts, and Facebook social groups. He's become a management critique. He's even had a tabloid moment - HIS BROTHER WAS A ROGUE TRADER TOO! Seriously...meet Oliver Kerviel.

Yep. Jerome Kerviel has gone viral, thoroughly crossing over from the business pages and into brand name category. At least for another 14 and a half minutes...

-- MDT

Labels: Jerome Kerveil, Jerome Kerviel, Oliver Kerviel, Societe Generale