French court slashes damages rogue trader owes to €1m from €4.9bn

A French appeals court has slashed damages owed to Société Générale from rogue trader Jérôme Kerviel to €1m from €4.9bn on Friday.

In 2010, Kerviel was sentenced to three years in prison for fraudulent computer use, breach of trust and forgery over losses resulting from trades executed during his employment at the French bank just before the financial crisis in 2008.

The appeals court said the he was “partially responsible” for the loss but that there was also “deficiency” in the bank’s management and security systems which contributed to losses.

Kervel said outside the court to reporters he still thinks he does not owe anything to Société Générale.

He amassed €50bn in hidden trades which cost the bank €4.9bn to undo.

France’s highest court, the Cour de cassation in 2014 upheld his conviction, that he was alone criminally responsible for the losses and the three-year sentence, but canceled the €4.9bn civil damages as they were “disproportionate” and he would not be able to pay them, so a new civil trial was ordered.

Kerviel is now trying to overturn his criminal conviction.

Shares in Société Générale were down 1.47% to 31.91 cents at 1632 CEST.