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Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerAccording (subscription required) to the Wall Street Journal, "Société Générale has stopped paying Mr. Kerviel and told him not to come to the office, but it hasn't managed to formally fire him. French law stipulates that to do that, the bank must first call him in for a sit-down meeting and explain its dissatisfaction. He has the right to bring along a trade-union official, a lawyer or anyone else he'd like."
Meanwhile, he's developed a cult following of people who think he's actually good. For some reason I'm not quite sure if I understand, the French Communist Party has leapt to his defense.
What makes Kerviel fascinating is that he lost all that money without profiting personally. The winners were those people on the other end of the trades -- people he didn't even know. If you've made money making bearish bets on the market lately, perhaps you should contribute to his legal defense fund.
Ex-con and former Crazy Eddie CFO Sam E. Antar explained to me recently that, contrary to popular belief, personal financial gain is not necessarily the primary motivation for fraud. Oftentimes ego, a disdain for authority, and a desire to impress others are more important factors.
It's hard to see Mr. Kerviiel as a total villain -- losing $7.2 billion of someone else's money without profiting a dime from it doesn't qualify as greedy.
I've reached the conclusion that Kerviel isn't a villian. He's just completely and totally nuts. But that also doesn't make him a hero.
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Reader Comments (Page 1 of 1)
2-02-2008 @ 11:32AM
al coholic said...
If he had somehow made 7 billion in profit he would have been hailed as a great trader and there would be no stories about the risks he took.
There are people in America who nearly brought down our entire financial system by cheating people on both ends of their dealings and lining their own pockets, but except for a few high profile resignations (which of course include enormous payoffs) most are waiting for the next big payday as these lower rates create a rush to refinance one more time.
Kerviel is less of a crook than they are.
2-09-2008 @ 10:50PM
desmond McReynolds said...
People who like power but lack a sense of morality, lack a conscience, lack a sense of remorse, lack a feeling of guilt and who end up harming themselves and others are sometimes known as psychopaths or sociopaths.
A baby lacks a conscience, a sense of guilt, a sense of remorse, a sense of right and wrong and some people grow into adulthood still retaining these baby-like qualities. That side of their personality never develops.
They can be very intelligent and charming and quite often they are very successful in the military and in politics -- Hitler, Stalin, Churchill, Roosevelt, Mao Tse Tung to give but a few examples. Power and especially the power of life and death over their fellows can be very important to these folk. Fortunately this banker fellow didn't bomb every city in Germany flat to the ground like that Churchill feller did.