SocGen rogue trader to be released from jail

Société Générale rogue trader Jerome Kerviel is to be released from jail next week and allowed to serve the remainder of his three-year sentence wearing an electronic tag.

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Société Générale rogue trader Jerome Kerviel is to be released from jail next week and allowed to serve the remainder of his three-year sentence wearing an electronic tag.

Kerviel, who previously worked in Société Générale’s IT department, was convicted in 2008 of circumventing the bank’s security controls and making a series of unauthorised transactions, costing the bank €4.9 billion (£3.9bn) that year alone.

The former trader was sentenced to three years in prison in 2010, and has now served 110 days after his conviction was upheld in March this year.

On Thursday a Paris appeals court confirmed a judge's ruling made last month that Kerviel could leave prison if he remained under supervision, and he is now due to be released on 8 September, according to the BBC.

"Jerome Kerviel can be admitted to the process of adjustment to his sentence. He'll leave Fleury Merogis this Monday and he'll carry on with a completely normal life," said David Koubbi, Kerviel’s lawyer.

French regulators previously fined Société Générale €4 million for failures in its internal risk management systems following the scandal.

The bank spent €130 million between 2008 and 2009 to strengthen its systems and controls. But in August 2010, it was fined £1.6 million by the UK Financial Services Authority for failures that meant it was inaccurately reporting four in every five of its transactions.

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