Societe Generale investigation opens
PARIS (AP) - January 29, 2008 Jerome Kerviel told investigators: "I can't believe that my
superiors were not aware of the amounts that I was committing, it
is impossible to generate such profits with small positions,"
according to excerpts of his testimony published in Le Monde
newspaper. Kerviel's remarks were confirmed by Isabelle Montagne, a
spokeswoman for the Paris prosecutor's office.
A lawyer for the bank accused Kerviel of lying. Societe Generale
said last week that Kerviel's actions cost the bank nearly 5
billion euros ($7 billion) as it unwound his trades.
"When you are questioned by police or judges, you have the
right to lie," lawyer Jean Veil told RTL radio. He said the bank
was "a victim of someone who lied, who cheated."
Kerviel told investigators of efforts to mask his massive
transactions, but he said the bank must nonetheless have noticed
something suspicious.
"The techniques I used were not at all sophisticated, and any
correctly conducted check should be able to detect these
operations," he said, according to the testimony in Le Monde that
the prosecution official confirmed.
Kerviel also insisted that his No. 1 concern was "earning money
for my bank."
"As long as I was earning cash, the signs were not that
worrisome," he said. "As long as you earn money and it isn't too
obvious, and it's convenient, nobody says anything."
According to the testimony, the futures trader also told
investigators that his pattern of hidden trades started in 2005
with a bet that turned profitable when markets fell because of
terrorist attacks in London.
"It makes you want to continue, there's a snowball effect," he
was quoted as saying.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
