1st NW Quadrant\The Approval Matrix: Week of February 11, 2008
By Blogging Stocks\Peter Cohan
Januanry 24th 2008
The Associated Press reports that France's second-largest bank by market capitalization, Societe Generale, has uncovered a rogue trader [Jerome Kerviel] who reportedly stole $7.14 billion -- forcing the bank to raise $8.02 billion and suspending trading in its stock on the Paris stock exchange.
It said [Jerome Kerviel] at the futures desk had misled investors in 2007 and 2008 through a "scheme of elaborate fictitious transactions." The [Jerome Kerviel] used his knowledge of the group's security systems to conceal his fraudulent positions. The unnamed trader beats Nicholas Leeson, whose 1995 $1.38 billion trading fraud in Singapore brought down Barings Bank and was made into a movie.
According to The Huffington Post, Jerome Kerviel is a 31-year-old Frenchman who enjoys judo and sailing, and Kerviel's colleagues described him as a "computer genius."