The United States invite Kerviel Case

SOCIETE GENERALE thought to be almost done with the Kerviel case. Judges Van Ruymbeke and Desset must conclude their investigation in the coming days and should be content to refer the former trader in court, thus exempting the bank from liability.

Heard today, Jerome Kerviel and his lawyers will lay their cards: demand for computer expertise, banking and accounting of the bank, hearing new witnesses, opening of sealed yet closed.
"We want to know whether Jerome Kerviel did not benefit from complicity by providing facilities from its hierarchy," says Bernard Benaïem, one of the lawyers trader.

Reassured by the progress of this investigation, the General Society is concerned however to open another investigation of the Atlantic. On 17 October the firm Coughlin Stoia Los Angeles has filed with the court for the Southern District of New York class (class action) to U.S. shareholders of Societe Generale. These investors believe that the French bank had hidden a "huge scandal" that has harmed. According to them, Societe Generale would need twice: on the crisis of subprime first and the case of Jerome Kerviel then. According to the complaint, the bank would be "revealed at the same time the two cases (January 2008)" for "creating confusion" about the reasons for the decline in its action. " Translated from the analysis américaine in financial turmoil, the case Kerviel allegedly used smokescreen to hide the risks taken by the bank.

Millions key

Major targets of applicants: Daniel Bouton, former CEO of the bank, and Robert Day, a director of the institution. A few days before the revelation of the Kerviel case, he reportedly sold a million and half shares for a total of 140 million €.

Between August 2005 and January 2008, the period covered by the class action, "the investors were never informed of the extent of the exposure of the company to the subprime crisis," says the petition, adding that Societe Generale has "affirmed that the crisis would have a limited impact on its finances. Nothing could be further from the truth. "

In view of this complaint, a U.S. judge will decide on a trial. A key: millions of euros in damages. Societe Generale can not imagine such a prospect. "We will conduct a vigorous defense against all the allegations in the class action, which are inaccurate," said Pierre Servan-Schreiber, one of the lawyers for the bank. Next month, it should ask the judge to reject the American procedure.

Of French small shareholders of Societe Generale could join the class action if their demand for damages in France is denied. "My clients have different interests from those of management of Societe Generale, Daniel Richard stresses, their lawyer. American justice seems more concerned for its shareholders than France. "