Bloomberg reports that the Cour de Cassation, France’s highest appeals court, yesterday ruled that the bank’s 2008 unwinding of the former trader’s unauthorized bets of more than $70bn -- exceeding the market value of the lender -- needs fresh scrutiny. The court accepted the former trader’s civil appeal that challenged the bank’s claim that he was solely responsible for the lender’s $6.77bn loss from liquidating the positions.
“The spotlight will be on the bank again,” said Jerome Forneris, who helps manage $11.74bn at Banque Martin Maurel in Marseille and owns Societe Generale shares. “For sure they wanted to be completely finished with this affair.”
While the court confirmed Kerviel’s three-year jail sentence from a 2012 verdict that found him guilty of abusing the bank’s trust, faking documents and entering false data into computers, its decision to get a court in Versailles to re-examine the facts of the case was claimed as a victory by Kerviel’s lawyers.
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