GO
Loading...

French Rogue Trader Has Not Sued Former Employer

Jerome Kerviel, at the center of a rogue trading scandal at French bank Societe Generale, has not launched any legal action against his past employer for now, a lawyer representing the former trader said.

"I can tell you that no court proceedings have been launched," Elisabeth Meyer told Reuters on Thursday.

Asked if Kerviel planned to sue, she added: "No comment."

The Times newspaper in London reported that Kerviel had launched court proceedings against SocGen to contest his sacking for gross misconduct.

Kerviel faces accusations that he caused SocGen billions of euros of losses through rogue trades.

But his lawyer Guillaume Selnet said last month after Kerviel was relased on bail from a spell in prison that the former trader was determined not to become the fall guy over the trading scandal.

SocGen declined to comment on the Times report on Thursday.

On Jan. 24, SocGen unveiled 4.9 billion euros ($7.7 billion) of trading losses, which it blamed on unauthorised stock market deals carried out by Kerviel, a junior trader there.

The bank has said that Kerviel managed to bypass control systems at SocGen to build up a position worth around 50 billion euros, which SocGen then had to unwind into an already falling stock market.

The Times said on Thursday that Kerviel and his lawyers were basing their case on two points.

Firstly, that Kerviel's gambles on markets were in the black when his managers intervened and that the losses came only when the trades were unwound. And secondly, on a legal technicality relating to French labor laws.