Rogue Trader Jerome Kerviel: Was the Punishment Too Harsh?
NEW YORK (TheStreet) -- Jerome Kerviel, the rogue trader whose wild bets led French bank Societe Generale (SCGLY) to a multi-billion dollar loss in early 2008, has been sentenced to three years in prison.
The prison term is, ironically, where he gets off easy, as it will likely take several lifetimes to pay his fine -- a whopping $6.7 billion.
The figure is equal to the amount it cost Societe Generale to unwind his speculative trades, which the bank claims were unauthorized. Kerviel claimed throughout his trial that the bank knew of his activities and chose to turn a blind eye so long as his bets made money.
It would take Kerviel 304,000 years to pay his dues, the Wall Street Journal estimates, assuming he gets paid minimum wage once he is freed from prison.
|A Paris court sentenced former Societe Generale trader Jerome Kerviel, 33, to three years in prison.|
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