The conviction of Jerome Kerviel in Paris I was very surprised. It is a show trial without equal. As if the Societe General has handed down the sentence itself. Who knows what influence the policy of France and Societe Generale have applied to the judge? Who knows?
I can say. I was both retailer in investment banking as well as auditor for the RZB Treasury & Investment Banking at Raiffeisen active. And I can not imagine me in the best of intentions, on the one hand Jerome Kerviel without knowledge of his department heads and supervisors has acted and, secondly, that the internal audit and risk management of Societe Generale did not notice. If this were true - but this is highly unlikely there are daily decisions of trading accounts in any investment banking - this is evidence for a complete failure, the risk management of investment banking and internal audit (which is responsible for trade and for the Treasury). I wonder why here the French financial market authority has not been involved.
I expires knows exactly we trade the securities in the trading rooms. It is virtually impossible that Jerome Kerviel's responsibility alone. Risk management and internal control bodies of the Societe Generale had then failed completely. Where are the consequences for internal audit and risk management of Societe Generale? Are there any? Then we are in such a case at Societe Generale very likely be back soon.
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