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5 Biggest Rogue Traders -- and Could It Happen Here?

1. Jerome Kerviel

Jerome Kerviel joined Societe Generale (SCGLY) in 2000, working in a compliance department and was promoted to junior trader by 2005.

In 2008, the bank accused him of making unauthorized speculative trades that had cost it $6.7 billion dollars.

Kerviel maintained that the bank and his bosses encouraged massive risk-taking as long as it made money.

Kerviel was sentenced to serve three years in prison, but that was where he got off easy. He was also ordered to pay back $6.7 billion to Societe Generale, which would likely take him more than a lifetime to repay once he got out of prison.

SocGen was ordered to pay a $5.5 million fine for failing to adequately supervise Kerviel.

"The absence of proper supervision on the part of the bank should not have been interpreted as a tacit green light to engage in wild speculation," Judge Dominique Pauthe said, according to reports.

--Written by Shanthi Bharatwaj in New York

>To contact the writer of this article, click here: Shanthi Bharatwaj.

>To follow the writer on Twitter, go to http://twitter.com/shavenk.

>To submit a news tip, send an email to: tips@thestreet.com.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
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