http://business.theage.com.au/rogue-trader-targets-bosses-20080627 -2xnr.html
June 27, 2008 - 8:29AM
French rogue trader Jerome Kerviel has told a psychologist his managers never reprimanded him despite ''tonnes of alerts'' sent to them over his dealings at Societe Generale, according to a document obtained by AFP.
The 31-year-old trader, who has been charged with breach of trust over the bank's multi-billion-euro losses, said his managers knew of his dealings but kept silent as long as he was making good returns.
''During four months, there were tonnes of alerts that came from my desk, and therefore from me, indicating problems,'' Kerviel told psychologist Pierre Bouchard in an assessment obtained by AFP.
''There were emails sent to my bosses from controllers indicating fake transactions. To my mind, the fact that no one came to talk to me about it somewhat justified my position,'' he said referring to his dealings in early 2007.
One of France's big three banks, Societe Generale shocked the financial world when it announced in January staggering losses of 4.9 billion euros ($8.02 billion) at the hands of a rogue trader.
The bank incurred the mammoth losses when it was forced to unwind more than 50 billion euros of unauthorised deals Kerviel is said to have made.
''The bosses don't care about the methods used but they're happy about the results,'' Kerviel was quoted as saying in the document.
''They knew that I was taking positions beyond what had been recommended. Without knowing the exact amount, they knew that I was trading outside the bounds.... Since it was profitable, they let it go by.''
In his evaluation presented to investigating judges this week, Bouchard described Kerviel as having a ''mature balanced personality'' with a slightly higher than average intellect.
He was ''fully conscious of his acts'', said Bouchart in the document.
Kerviel was motivated by a quest for success in his financial dealings, his professional career and also personally, according to the psychologist.
''When he made important gains, he was congratulated, encouraged and treated like a star,'' wrote Bouchard in the evaluation.
''But reprimands, criticism and punishments are seen as nearly absent,'' he added.
Kerviel turned himself in to police on January 26, two days after the bank revealed the losses, and on January 28 was charged with breach of trust, fabricating documents and illegally accessing computers.
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