Will 'Rogue Trader' Kerviel Escape a Jail Sentence?
Kerviel's trial and market confidence
But some experts believe this grey zone is imaginary. “Fraud is fraud,” Lakeland said. “It is not difficult to tell if someone has lied, falsified documents and created fictitious counterparties.”
“I don't think it’s a strong defense to say, ‘I committed a crime, others knew it and said nothing.’ It's still a crime whether his superiors stopped him committing it or not,” he added.
Restoring Market Confidence?
The verdict in the case could have some impact on how banking is regulated in the future, as well as how confident investors are.
“Regulatory bodies such as the FSA are increasingly imposing significant financial sanctions on banks who fail to properly control their employees,” Lakeland said.
In Kerviel’s case, the French central bank fined Societe Generale 4 million euros.
A “guilty” verdict it may work in the market’s favor, if it convinces the public that the big violators will be punished, according to some analysts.
“Amaranth became a scapegoat in the unfortunate rise in natural gas prices in 2006,” Menchel said. “Everyone’s happy as long as they’re making money. As soon as the market turns sour, lot of people look for someone to blame.”
For now, Kerviel looks to be ready to tackle his former boss head-on. "He's in a fighting mood… to fight to be able to tell the truth," Metzner said.
Metzner declined to comment on what kind of prison term would receive if he gets convicted. "We are going to fight to avoid that."
- Antonia Oprita in London contributed to this article.More European News