Kerviel joined the middle offices in the bank Société Générale in the summer of 2000, escroquerie Forex in its compliance department. 9 billion, a figure far higher than the bank’s total market capitalization. Bank officials claim that Kerviel tried to conceal the activity by creating losing trades intentionally so as to offset his early gains.
The bank claimed Kerviel “had taken massive fraudulent directional positions in 2007 and 2008 far beyond his limited authority” and that the trades involved European stock index futures. Kerviel is not thought to have profited personally from the suspicious trades. Prosecutors say Kerviel has been cooperative with the investigation, and has told them his actions were also practiced by other traders in the company. Kerviel admits to exceeding his credit limits, but claims he was working to increase bank profits. The bank states that Kerviel was assigned to arbitrage discrepancies between equity derivatives and cash equity prices, and “began creating the fictitious trades in late 2006 and early 2007, but that these transactions were relatively small.