Jerome Kerviel, a former trader at Societe Generale in Paris whose rogue trades cost $6 billion to unwind in 2008, faces five years in prison and a fine of nearly half a million if convicted by the three-judge panel that heard his case early in the summer. The trial laid bare countless ways he could or should have been caught, despite his assertions that his superiors knew what he was doing. But as Kerviel awaits news of his fate, there's much talk of what banks can do to avoid SocGen's errors when it comes to risk management.
One way to stop a rogue traders in their tracks: improving trading and operational risk controls which even SocGen's internal investigation now concedes were sorely lacking.
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