French rogue trader on trial

The trial of Jerome Kerviel, the French trader accused of gambling away billions of his bank’s moneym began today.

The trial of Jerome Kerviel, the French trader accused of gambling away billions of his bank’s moneym began today.

The 33-year-old former Societe Generale trader, dressed in a dark suit, white shirt and a light, thinly striped tie, was silent and stony-faced as he followed his lawyer, Olivier Metzner, through a sea of reporters and cameras into a Paris courtroom.

Mr Metzner told journalists: "We hope that there will be transparency, that the truth will not be obstructed by Societe Generale, like it has been for two years."

Once inside the court, Mr Kerviel, who risks five years in jail and a €375,000 fine if found guilty of charges of breach of trust, computer abuse and forgery, declared his current profession as "consultant" and his monthly salary as €2,300.

The trial will dredge up uncomfortable memories for Societe Generale as it tries to restore investor confidence in an atmosphere of fragile economic recovery and looming tighter regulation.

Although Mr Kerviel has admitted to building up unauthorised trading positions leading up to the loss in 2008, he has said breaches in Societe Generale's risk control system were tolerated, and this has been a key part of his legal defence.

Societe Generale has hit back by saying he acted alone and that investigating magistrates had already dismissed his claims of tacit complicity from his bosses.

The bank said before the trial that it holds Mr Kerviel entirely responsible and called for an "exemplary punishment".

Facing off in the trial are two of Paris' best-known lawyers -- Mr Metzner and Jean Veil.

Mr Metzner's clients include ex-Panama dictator Manuel Noriega, one-time Vivendi boss Jean-Marie Messier and former French prime minister Dominique de Villepin.

The trial is due to run until June 25th, clashing with a crucial investor day for Societe Generale on June 15 as it tries to bolster confidence in its new strategy.

Analysts say the bank's brand suffered in the wake of the Kerviel scandal, allowing rival BNP Paribas to gain the advantage with domestic retail customers while at the same time forcing SocGen to cut down on proprietary trading.

Reuters