TIMELINE: Timeline of events in SocGen rogue trader case

Tue Mar 18, 2008 1:43pm EDT
 
[-] Text [+]

(Reuters) - Jerome Kerviel, blamed by French bank Societe Generale for the world's biggest rogue trading scandal, left jail on Tuesday after winning a legal battle against detention.

Following is a timeline of events in the scandal that caused $7.6 billion of losses at the French bank:

2007 - SocGen junior trader Jerome Kerviel starts building up large positions. As his losses mount he tries to cover up his positions.

November 2007 - The Eurex derivatives exchange questions SocGen about Kerviel's trading activities. This is revealed by a Paris prosecutor on Jan 28, 2008.

January 19/20, 2008 - SocGen senior executives begin investigation and senior management question the trader.

January 21 - Management decides to liquidate Kerviel's positions. Equity markets plunge that day, with many stock indexes suffering their worst one-day drop since 9/11.

January 24 - SocGen issues a statement saying it has uncovered a fraud resulting in losses of 4.9 billion euros.

January 25 - French police carry out searches of the home of Kerviel and of the headquarters of SocGen. He is taken into police custody the next day.

January 27 - SocGen says the trader ended up with a position of 50 billion euros which SocGen decided to unwind from Jan 21-23.

January 28 - Paris prosecutor says Kerviel admitted hiding his activities from superiors but added that Kerviel said other traders played fast and loose with bank rules.

-- Paris prosecutor reveals that in November 2007, the Eurex exchange had alerted SocGen to suspicions it had concerning Kerviel.

-- Kerviel is released under judicial supervision.

January 30 - A SocGen board meeting decides that bank chief Daniel Bouton and his deputy Philippe Citerne should stay on.

-- Bouton appears on France 2 evening news saying the bank has enough capital to stay independent.

February 4 - Lagarde says that France favors a friendly approach if a merger were needed for the bank.

February 5 - Kerviel says he will not be "turned into a scapegoat of Societe Generale."  Continued...

 
A Taliban fighter poses with weapons in an undisclosed location in Afghanistan October 30, 2009. REUTERS/Stringer
Taliban may wait out Washington's "endgame"

Washington's hint of an Afghanistan endgame in saying U.S. troops won't still be there in 2017 might help win over a war-weary public, but there is no guarantee a notoriously patient Taliban won't just wait the Americans out.  Full Article | Full Coverage 

Featured Broker sponsored link

Editor's Choice

A selection of our best photos from the past 24 hours.  Slideshow 

Most Popular on Reuters

  • Articles
  • Video
Bernd Debusmann
A paradox of plenty: Hunger in America

In the world’s wealthiest country, home to more obese people than anywhere else on earth, one in six Americans struggled to feed themselves and their children in 2008. Millions went hungry, at least some of the time. Things are bound to get worse.  Commentary