Jerome Kerviel, the trader being blamed for the biggest alleged fraud in banking history, may have used his IT skills as well as his intimate knowledge of the Societe Generale’s back-office systems to run up losses estimated at £3.6bn.
Kerviel’s CV shows that the trader and market maker had a knowledge of developing Visual Basic scripts for Excel and had participated in developing the specifications for some of the financial instruments offered on the bank’s ClickOptions platform.
When Kerviel worked as a trader assistant he also worked on automating processes and managing tools development for the bank’s back-office systems.
Kerviel originally joined the bank in August 2000, and for two years worked in Societe Generale’s middle office, where he again worked on products modelling and process automation, as well as Excel development using Visual Basic for the bank’s exotic desk.
Kerviel lost the money by risking billions of euros on trading equity derivatives that gambled on future movements on European stock exchanges. He is understood to have constructed complex fictitious hedging positions to cover his tracks.