Mr. jerome kerviel

kerviel75x752.jpgMr. Jerome Kerviel, a 31 year old options trader with world respected international corporate and investment bank Société Générale France 2nd largest bank. He joined the bank at the age of 23 and has diligently worked himself up the financial leaders. Mr. Kerviel is a French man earning a modest $145,700 a year. ($145,700*71= $10,295,00 JMD). He resides in the middle class Paris community of Neuilly sur Seine.

Young options trader, son of Marie-Jose and Charles, world’s biggest fraudster extradinaire. Jerome Kerviel was able to use his intimate knowledge of the inter-links of the financial maize to defraud his employers to the tune of $7.3 billion (7,300,000,000 * 71= over $500 billion JMD).


Apparently the bank had to write off their 2006 profit of €5.2 billion to just €600 million. My, oh my what ever will a bank do losing so much money, my deepest sympathies for them making millions instead of billions. At least they still made a profit. I am a little puzzled as to how any institution with all the smart people in accounting, auditors, top notch security software, all the gatekeepers of checks and balances could have not catch on sooner to such a colossal fraud. Jerome Kerviel must have been exceptionally creative in carrying out his tricks and hiding it all at the same time.

There are talks that when news broke of this story it sent the financial markets which are already jittery by the way in a tail-spin. Its amazing the tremendous effect that one person can have on the world markets in the most simplest of terms.

What I find especially interesting about this story is that unlike all the other massive financial thievery of our times, from the initial out set it does not appear he pocketed a dime for himself. This appears to be bad financial decisions that grew to an alarming rate $7.3 billion and an attempt to hide it all away.

In my effort to understand it I would theorize maybe he made a few bad trades and sought to correct it by trading bigger and riskier. This is a common problem for some traders speaking from a FOREX point of view. So you try to recover but it gets worst. Instead of admitting defeat settle down and gather your marbles you take on more and more and more until BAM!!!

You racked up a massive credit card bill  or in the case of Mr. Kerviel $7.3 billion. I think this story can be related to by many traders whether of stocks, FOREX, options, derivatives, futures whatever. There are those who fail in these fields losing a truck load of money. They try to hide the damning result from their spouses, friends or whatever.

The question in my mind is how long he thought he could go along with this charade without anyone finding out.

It is reported that Jerome had serious personal problems that many family and friends say had a major impact on him. He lost his father recently and his wife walked out on him, A one two punch to the soul. These are major life events that can not be trivialized. Maybe this offers some explanation to the irrational behavior.

Trading with emotions can be catostraphic and if he was a mental case at the time well that maybe a part of the explanation.

It is always interesting to hear what people who knew people like Jerome say about their character before a shocker like this. Here are a few quotes I found in a couple news stories online that I though was interesting. The general theme was always he was quite, a loner and the current situation is completely out of character of the person they knew.

Sounds familiar?, The guys who always shoot up schools in America or are involved in some other major bullshit that scares the world are also described in these same words. I can testify however that regardless of the patterns they just give some people with those traits in their character a bad name.

Collette Thomas, 79 an old lady who lived in the same apartment building as Kerviel said: “”He was very young, handsome, a beautiful one … but he was not at all talkative,” she said. “He didn’t talk, he petted my dog, whom he adored.”

Her daughter Isabelle, a nurse, said she would see him about once a week. “But he didn’t talk, he climbed the stairs four at a time and disappeared,” she said.

“He was physically seductive, always elegantly dressed. But he was always alone,” said Anne Gillier, who works in a nearby real estate agency and saw him regularly — until recently. “I never saw him with a woman, or even with another man, I always saw him alone.”

The banks CEO described Kerviel “extraordinarily sophisticated.”

The mayor of Pont l’Abbe described Kerviel as a “poised, calm, thoughtful young man.”

Kerviel, described as a “brilliant” student by one of his former university teachers.


~ by RB on January 27, 2008.

2 Responses to “Mr. jerome kerviel”

  1. Support and donate money to Jerome Kerviel

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  2. […] of a rogue trader continues If you read my first post about French rogue trader Jerome Kerviels‘ big so call defrauding of SocGen, you will remember my exact words […]

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