Jérôme Kerviel

On 7 June 2016, the Court of Appeal of Versailles condemned SocGen for their unlawful firing of Kerviel. Société Générale said it would appeal.

While awaiting a ruling on his legal appeal and still protesting SocGen's stance in his case, Kerviel met with Pope Francis outside the Vatican on 19 February 2014, and undertook a pilgrimage from Rome to Paris against the "tyranny of the markets".

On 8 September 2014, Kerviel was released from Fleury Merogis prison having served less than five months of detention. He was to begin a job with an IT consultancy firm.

On 24 October 2012, a Paris appeals court upheld the October 2010 sentence to three years in prison with another two suspended, and ordered Kerviel to reimburse 4.9 billion euros to SocGen for its loss. In March 2014, a French high court upheld Kerviel's prison sentence but ruled he would not have to repay €4.9bn.

Kerviel's trial began on 8 June 2010. On 5 October, he was found guilty and sentenced to five years of prison, with two years suspended, full restitution of the $6.7 billion which was lost, and a permanent ban from working in financial services. Caroline Guillaumin, a spokeswoman for SocGen, stated that the restitution was "symbolic", and that the bank had no expectation that the sum would be paid. Olivier Metzner, Kerviel's lawyer, described the sentence as "extraordinary" and said that Kerviel would appeal. Kerviel's sentence was suspended until his appeal was completed.

Kerviel grew up Pont-l'Abbé, Brittany. His mother, Marie-Josée, is a retired hairdresser, and his father, Charles, was a blacksmith. He has an older brother, Olivier. Kerviel was married, but he and his wife separated in 2008.

SocGen 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. The fake trading increased in frequency, and in size". Bank officials claim that throughout 2007, he had been trading profitably in anticipation of falling market prices; however, they have accused him of exceeding his authority to engage in unauthorized trades totaling as much as €49.9 billion, a figure far higher than the bank's total market capitalization. Kerviel tried to conceal the activity by creating losing trades intentionally so as to offset his early gains. According to the BBC, Kerviel generated €1.4 billion in hidden profits at the beginning of 2008. His employers say they uncovered unauthorized trading traced to Kerviel on 19 January 2008. SocGen then closed out these positions over three days of trading beginning 21 January 2008, a period after which the market experienced a large drop in equity indices, and losses attributed are estimated at €4.9 billion ($7 billion).

In answer to the rumors that Kerviel had fled Paris following the discovery of the unauthorised trading, on 24 January 2008 Kerviel's lawyer denied that he attempted to disappear and said he remained in Paris to face the accusations. That same day, SocGen filed a lawsuit against "a 31-year-old person" for creating fraudulent documents, using forged documents and making attacks on an automated system, according to Clarisse Grillon, a spokeswoman for the Nanterre prosecutor. Le Figaro reported that in addition to the SocGen lawsuit, a group of shareholders filed a lawsuit for fraud, breach of trust and forgery.

Around 25 January 2008, police raided the Paris headquarters of SocGen and Kerviel's apartment in the western suburb of Neuilly-sur-Seine to seize his computer files. On 26 January 2008, the Paris prosecutors' office stated that Kerviel "is not on the run. He will be questioned at the appropriate time, as soon as the police have analysed documents provided by Société Générale." He was taken into police custody later that day.

Kerviel was formally charged on 28 January 2008 with abuse of confidence and illegal access to computers. He was released from custody a short time after. The charges filed carry a maximum three-year prison term. On 29 January 2008 investigating judges Renaud van Ruymbeke and Françoise Desset had rejected prosecutor Jean-Claude Marin's bid to charge Kerviel with the more serious crime of "attempted fraud" and refuse bail.

In April 2008, following Kerviel's provisional release, he was hired by Lemaire Consultants & Associates, an information systems and computer security consulting firm.

SocGen 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. Though SocGen officials say Kerviel apparently worked alone, skeptics question how unauthorized trading of this magnitude could go unnoticed. Kerviel's unassuming background and position have heightened the skepticism that he worked alone. Some analysts suggest that unauthorised trading of this scale may have gone unnoticed initially due to the high volume in low-risk trades normally conducted by his department. SocGen said that whenever the fake trades were questioned, Kerviel would describe it as a mistake then cancel the trade, after which he would replace that trade with another transaction using a different instrument to avoid detection. Kerviel's lawyers, Elisabeth Meyer and Christian Charrière-Bournazel, said that SocGen's managers "brought the loss on themselves"; accused them of wanting to "raise a smokescreen to divert public attention from far more substantial losses in the last few months"; and said that Kerviel had made the bank a profit of US$2 billion as of 31 December 2007.

During an interview, one of Kerviel's former lecturers at Lyon, Gisèle Reynaud, stated that Kerviel "was a student just like the others, a young man, and he didn't distinguish himself from the others." In 2001, at the suggestion of Thierry Mavic, the mayor of Pont l'Abbé, Kerviel stood for a seat on the local council with the Union for a Popular Movement but was not elected.

Kerviel graduated in 2000 from Lumière University Lyon 2 with a Master of Finance specializing in organization and control of financial markets. The university's financial program, which was initiated in the 1990s with the support of France's larger banks, was intended to prepare students for middle and back office positions in the trading departments of financial institutions. Prior to that he received a bachelor's degree in finance from the University of Nantes.

Kerviel joined the middle office of the bank Société Générale (SocGen) in the summer of 2000, working in its compliance department. In 2005 he was promoted to the bank's Delta One products team in Paris, where he was a junior trader. SocGen's Delta One business includes program trading, exchange-traded funds, swaps, index futures and quantitative trading. Christian Noyer, governor of the Bank of France, has described Kerviel as a "computer genius"; however, sources within Société Générale described Kerviel as "not a star". Kerviel earned a bonus of €60,000 on top of a €74,000 salary in 2006, considered modest compared to the salaries paid to traders in the financial markets. He had hoped for a €600,000 bonus for 2007 and would have received at least half that amount.

Jérôme Kerviel (French pronunciation: ​[ʒeʁom kɛʁvjɛl]; born 11 January 1977) is a French rogue trader who was convicted and imprisoned in the 2008 Société Générale trading loss for breach of trust, forgery and unauthorized use of the bank's computers, resulting in losses valued at €4.9 billion.