# Kerviel fraud scandal

- Canonical URL: https://www.gerhardmerk.de/kerviel-fraud-scandal
- Post ID: 589678
- Modified: 2023-07-25T21:02:16+00:00
- Language: en

## Definition

In early January 2008, the well-paid foreign exchange trader Jérôme Kerviel bought 140,000 Dax futures on Eurex in the name of his bank, Société Générale (France's second-largest institution; known in the jargon as SocGen). The futures contracts were issued for a level of the Dax of 8,000; every point above this index level would have resulted in a profit of 25 euros per contract. - In fact, the Dax fell, and the options transaction resulted in a loss of almost USD 5 billion. This raised many questions about risk control at Société Générale; the bank suffered a considerable damage of image (i.e. the perception, the mental impression people have when they come across the name Société Générale). - However, the high-profile scandal prompted banks around the world to review their security and surveillance systems for reliability. - See stock index, Citigroup manipulation, compliance, employee guidelines, risk transparency, spread bets. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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