Tuesday, October 05, 2010

Understatement of the Day

"PARIS – Former Societe Generale SA trader Jerome Kerviel was convicted on all counts Tuesday in one of history's biggest trading frauds, sentenced to three years in jail and ordered to pay the bank a mind-numbing euro4.9 billion ($6.7 billion) in damages.

The ruling marked a huge victory for Societe Generale, one of France's most blue-blooded banks, which has worked to clean up its image and put in place tougher risk controls since the scandal broke in 2008.

The 33-year-old former futures index trader stood expressionless as the court convicted him of all charges and pronounced a five-year sentence with two years suspended. Kerviel was found guilty on charges of forgery, breach of trust and unauthorized computer use for covering up bets worth nearly euro50 billion between late 2007 and early 2008."

And then the Understatement of the Day, emphasis mine:
"In a stunning blow, the court also ordered Kerviel to pay the bank back the euro4.9 billion that it lost unwinding his complex positions in January 2008 — a punishment he would almost certainly be unable to pay."

Ya think he might be unable to pay?   I'd say it's a certainty that he won't be able to pay... But wait, maybe I'm wrong - his lawyer is already asking for donations:

""I hope you all will donate a euro to Jerome Kerviel," the lawyer told TV cameras and reporters,"



Anonymous said...

he's on the hook though if there is hyperinflation.

IF said...

Heads Societe wins, tails little Jerome loses. Now, what is happening with the other French dude, Mr. Fabulous? He came from a better school and somehow he seems to stay above the water.