6 Oct 2010

Rogue trader sentenced to jail

9:59 am on 6 October 2010

Financial trader Jerome Kerviel faces three years in prison for unauthorised deals that nearly ruined the French bank Societe General in 2008.

Kerviel ran up losses of €4.9 billion, which the court in Paris told him he must repay.

He was found guilty of breach of trust, forgery and entering false data into computers.

Kerviel's lawyer, Olivier Metzner, said his client would appeal against the conviction. The former trader will remain free until the appeal is heard.

The trial earlier this year was over charges that he bet €50 billion of SocGen's money without the bank's knowledge.

Kerviel's defence was the bank knew about the risk-taking and was content while he was making profit, with Mr Metzner saying his client was "disgusted" about the ruling.

Following the scandal, the bank was fined €4 million by French regulators for failures in its systems.