turns out that dear ole mr kerviel bet the equivalent of france's annual budget deficit...about 50 BILLION euros...holy sheeet! where's the blardy controls??? something must be seriously wrong with soc-gen's internal systems that he could get away with it for more than 2 weeks, racking up a futures tab the size of godzilla!
ooooh heads will roll for this, big time...
French trader 'staked 50bn euros'The French trader at the centre of a massive fraud case had gambled around 50bn euros ($73bn; £37bn) before being uncovered, his employer has said.
Bank Societe Generale said Jerome Kerviel, 31, appeared to have been operating alone. When the bank reversed all the deals he allegedly made, it was hit with a loss of 4.9bn euros.
Lawyers for Mr Kerviel, who is being questioned by police, said their client had "committed no dishonest act". "He did not siphon off a single cent, and did not profit in any way" from the bank's assets, the lawyers told AFP.
Mr Kerviel handed himself in on Saturday, two days after the scandal was revealed publicly. No charges have yet been brought against him. By early afternoon on Monday police must either free him or present him to a judge for the opening of a full judicial investigation into charges of fraud.
Societe Generale on Sunday accused its trader of using "fraudulent methods", and concocting "fictitious operations" to prevent detection. It said his background in trader oversight enabled him to fool those supposed to monitor traders' activities.
He had committed some 50bn euros to purchases of "futures" portfolios - effectively betting on the future direction of the stock market - the bank said. That was more than the bank's own worth - about 35bn euros - and about the size of France's entire annual budget deficit.
Traders are supposed to balance each purchase with a sale, but Mr Kerviel allegedly made up fictitious sales, leaving the bank massively overcommitted.
Analysts have suggested that Societe Generale's massive sell-off may have played a part in sparking the huge losses suffered by world stock markets early last week.
more on this story HERE
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