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Rogue Trader Causes $7.2 Billion Loss

News Flash: The Biggest Fraud in Banking History


While U.S. banks have been making daily news for their financial troubles, France's Societe Generale made the biggest bank headline yesterday. A rogue trader named Jérôme Kerviel managed to lose about $7.2 billion with a series of bogus transactions over the past year. The 31-year old trader was responsible for betting on the markets' future performance and it's unclear if he sought personal gain from the fraudulent trades. Financial Times reports that these could be "the biggest frauds in investment banking history." The bank has filed a police report and it will be interesting to see what the punishment will be for the enormous scale of the fraud.

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