http://www.nytimes.com/2010/10/06/business/global/06bank.html By Nicola Clark The New York Times October 5, 2010 PARIS -- When a French judge on Tuesday sentenced Jerome Kerviel, the former Societe Generale trader, to three years in prison and ordered him to repay €4.9 billion in restitution to the bank, the collective gasp from the courtroom clearly signaled that the question of who bears responsibility for banks’ aggressive risk-taking in the build-up to the global financial crisis is far from resolved. The verdict, legal experts said, has once again laid bare the deep distrust among the French public of its elites and its financial institutions — a suspicion that has only strengthened in the years since the U.S. subprime mortgage crisis brought about the multibillion-dollar bailouts of many of the world’s leading financial lights. “It really does hold him solely responsible, which is probably the most debatable part of the decision,” said Christopher Mesnooh, an international lawyer with Field Fisher Waterhouse in Paris. “The message from the court is that Societe Generale — a leading jewel of the French banking sector -- did not act irresponsibly, but was the victim of a rogue trader.” Mr. Kerviel, 33, whose €50 billion, or $69 billion at current exchange rates, in rogue dealings almost brought about the French bank’s demise, was convicted on all counts of breach of trust, forgery and unauthorized use of computer systems. The court sentenced him to five years, with two suspended, and barred him for life from working in financial services. [...] _______________________________________________________ Subscribe to InfoSec News - www.infosecnews.org http://www.infosecnews.org/mailman/listinfo/isnReceived on Tue Oct 05 2010 - 22:52:55 PDT
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