Prison Likely for France's Rogue Trader Jerome Kerviel

Bloomberg reports that Judge Mireille Filippini today upheld a 2010 verdict finding Kerviel guilty of abusing the bank’s trust, faking documents and entering false data into the computers. Kerviel argued that the bank knew he was exceeding his mandate and was using him as a scapegoat for its subprime mortgage market losses.

The 2008 trading loss was one of the biggest in history, wiping out almost two years of pretax profit at Societe Generale’s investment-banking unit. Kerviel, 35, was called a 'terrorist' by then-Chief Executive Officer Daniel Bouton, a comment he refused to apologize for during the June appeals hearings.

The prosecution rejected Kerviel’s arguments and asked Filippini to increase his sentence to the maximum five years, from the three years he received in 2010.

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Kerviel Loses Appeal Over 4.9 Billion-Euro SocGen Trading Loss