Jérôme Kerviel, world hero

The lawyers for Jérôme Kerviel, France's super-trader, say that he is stunned by his unwanted celebrity. If he takes a look at the internet he may be relieved to find that, mockery aside, he has become a world hero.

Over the past few days fan clubs and tribute sites have sprouted across the net: They include Facebook, dedicated sites such as Jeromekerviel.com,   and Wikipedia, Youtube and Dailymotion.

After half a million Google searches yesterday, JK's admirers are singing his praises as "The Che Guevara of Finance", the "James Bond of the Soc Gen". The real JK may have lost his Facebook friends on the day of his arrest, but 11 new Jérôme Kerviels are on Facebook at the moment, with 30 groups in French and English. On one he has over 900 fans, many of whom proclaim their love for  the clean-cut Breton whose pals called him Tom Cruise.

The T-shirt above, for sale at 17.99 dollars, features on the "Jérôme Kerviel Should Win the Nobel Prize for Economics" entry.

JK's new stardom comes in two flavours. There is mockery, much of it anti-French, apparently from professionals in the Anglo-American financial world. Within hours of the scandal breaking last Thursday, this lot was circulating the spoof news story about Kerviel being stressed out with his 30-hour working week.

Then there are the real admirers, who are voicing the widespread glee in France at the idea of a young provincial making fools of the capitalist establishment.

"Jérôme, je t'aime..." says a common line from women. For this group, JK is a scapegoat and a Robin Hood figure, the man who made clowns of the Paris money elite.

One female admirer on Facebook writes: "We are many who do not believe for a second the version of the boss of Société Generale. Everyone can blow a fuse some time and everyone has the right to a new start. Whatever happens, you're not alone!.

"Notre Jérôme" has become a hero for the professional comedians too. Nicolas Canteloup, the morning radio impersonator, today made him the star of a new television show: "Who wants to lose billions?". This is a play on Qui Veut Gagner des Millions?, the French version of the British "Who Wants to be a Millionaire?". Canteloup's contestants had to decide to whom they would lend a million to be sure of losing it. Kerviel was one of the choices, along with Patrick Bruel, the poker-playing popular singer.

Canteloup's brilliant imitation of Nicolas Sarkozy yesterday had the President deciding to appoint Jérôme Finance Minister instead of Christine Lagarde. "He only lost five billion euros, but she has run up a deficit of 50 billion," said Sarko-Canteloup.   

One of many JK videos. This is his CV (resumé to Americans)

CV de jerome kerviel...

Comments

[Jack]

So let me get this straight. This tool takes billions of euros that aren't his, defrauds his workplace to cover an epic gambling addiction, blows these people's hard-earned cash on stupid bets...and the people love him for it?

Wow. Just...wow.

[Informed]

You have to remember, this is France. It is run by Socialist that want to steal from the rich to give to the poor. Of course they would love someone that stole from a bank. Forget all the people that had stock in the bank. Hell they must be rich too, they own stock.

[Christian]

Agreed Jack. I know where it comes from, but I will never understand French Anti-capitalism. Perhaps the left leaning public sector mediocrity wont be laughing when a trader bankrupts their pension plans and they cant retire at 50.

[Richard]

I always thought that an individual had to make a lot of money before others would look up to him. Not in France though. Young French rogue investment banker, Jerome Kerviel, lost over $7 Billion Dollars of his bank’s money and he’s being worshipped as a super hero.

[wargammer2005]

how many people are hurt by this?

or does this matter anymore?

do the fools that think this guy is some sort of hero ever stop to think where the tools of a modern society come from?

they have zero understanding of where the food they eat comes from, let alone anything else.

[R.G. Frano, A.C.L.S.]

For once, 'Jack' DOES KNOW S--T! While I wouldn't be surprised to learn this rogue trader's
employer is just as crooked as he (apparently) is, as an American, with the 'baggage' of 'ENRON', (the
late Kenneth Lay, friend of 'Usurper
Bush') the usury-powered mortgage fraud, ("No Job? No Income? No Problemo!"), John McCain running for president, (alumnus of the Charles Keating, 'S&L' econo-scandal), Iraq war profiteering, (another econo-scandal), last night's 'state of the union' speeach, (a 'verbal' fraud, as well as an 'embarrassement'!), and of course, very long term unemployment, (while a 'born & bred'
U.S. citizen, I'm not (apparently) entitled to employment because of the huge number of forign econo-slaves available in the U.S.!), it seems like people are stealing like 'felony grande theft' was going to become 'illegal', &/or, like it was 'goin' out of style'!!
There is NOTHING cute about a multibillion fraud! The world pulled itself out of the 1930's Depression with 'W.W.-2'.
'W.W.-3' will go thermonuclear, like, immediatly, (or 'thermo-nuklr', as 'Usurper Bush' is wont to say!), so I guess we'll be 'econo
-trading' with the rocks & twigs that Einstein said we'd fight 'W.W.-4' with...

[Michael Bloomberg for President]

Wonder what Mike Bloomberg would have to say about Jérôme Kerviel?

[rob]

To the previous posters. Kerviel was a low-level trader at Soc Gen. The types of transactions that he is said to have made are usually reviewed by a number of people before being approved. This can mean only one of two things: (1) gross incompetence on multiple levels (which I find highly unlikely, even for the French) or (2) Kerviel was acting on direct orders and is being used as a scapegoat.

[Rob]

JACK, INFORMED, CHRISTIAN,
What planet are you on?!?
OK. Maybe this guy was out of his depth but he only screwed the bank in the same way they screw the public on a daily basis (don't for ONE second kid me there is anything LIKE a free market in the banking sector!!!).
And, from personal experience, I can tell you that the Societe General seems to take extreme pleasure in squeezing every last cent out of you the second you have a problem making a repayment.
The banks are the biggest parasites around at the moment. Look at their huge profits of billions (divided-up between a few thousand people at most). Look at their short-termism and the accompanying loss of an industrial base in Britain (something that has not happened in Germany anywahere near to the same extent which is still the world's largest exporter). Look at the greedy 20-somethings they employ who don't even know how to read a balance sheet and yet gamble with the lives of thousands of people every day to see if they can make a quick buck.
I'm pro-free market with sensible government regulation. That does mean I have to be blindly a pro-"laissez-faire" capitalist.
WAKE UP!!

[starlifter]

I think it's great. Just shows you all the "smart people" running things don't really know much more then me or you. They just act like they do. (Perception) What would have happen if his bets where correct? I’m sure someone at the bank would have taken credit for being so smart.

[dot king]

Informed -
France is run by socialists?
Has anyone informed the Elysée?
I think they should be told, it's only right . . .

[Lily]

As a tribute to Sarko and Kerviel, we've had two bikinis, one T-Shirt and one sleeveless top. Summer must be close... (or the longing for it.) -

Does anyone have any Velib winter news?

[Valentin]

"Does anyone have any Velib winter news"

Used them last weekend. They seemed in much better shape now that there's no more strike pressure. If they don't seriously expand the bike lanes though, it will remain a weekend thing tho'..

[Joe]

ROB said- "OK. Maybe this guy was out of his depth but he only screwed the bank in the same way they screw the public on a daily basis (don't for ONE second kid me there is anything LIKE a free market in the banking sector!!!)."
***********************************
What kind of wacko are you? This guy defrauded the bank and it's shareholders out of BILLIONS of Euros. What about them? What about the people who have part of their retirement funds in this banks stock?

My goodness, just how ignorant are you left wing morons anyway? Do you EVER think about anyone but yourselves and your useless ideology?

[Jack W]

Jerome Kerviel is a patsy. The real evil in this scandal is paper money. Same problem in the US. Fiat money, yet another infringement on our American rights by the gov't. Add it to the ever-growing list of violations:
They violate the 1st Amendment by opening mail, caging demonstrators and banning books like "America Deceived" from Amazon.
They violate the 2nd Amendment by confiscating guns during Katrina.
They violate the 4th Amendment by conducting warrant-less wiretaps.
They violate the 5th and 6th Amendment by suspending habeas corpus.
They violate the 8th Amendment by torturing.
They violate the entire Constitution by starting 2 illegal wars based on lies and on behalf of a foriegn gov't.
Support Dr. Ron Paul and save the World.
Last link (unless Google Books caves to the gov't and drops the title): http://www.iuniverse.com/bookstore/book_detail.asp?&isbn=0-595-38523-0

[alan morgan]

There are some really weird comments on this subject. Makes you wonder what planet some people are on.

[Now now, Alan. They are coming from the USA where this post has had the good fortune of being quoted on the Drudge Report this afternoon. 47,000 page views in a couple of hours. CB]

[Valentin]

lol Alan, here's another one:

It is quite clear what should be done to stop this kind of situations from happening. A simple action plan:

- forbid any staff move between backoffice and frontoffice inside the same financial company

- strictly separate investment bank activities from other kind of banking;

- forbid any financing of the unregulated sector (hedge funds/derivatives) by capital from the regulated one (subject to Basel rules, for example)

- forbid stock options

- block all capital movement to and from offshore locations

And for the glorious finish:

- return to the Gold Standard !

[Jason B]

So this putz is a "National Hero" to many in France? Drugs are bad. Mmmmmkay?

[Rev. Jynxx Midnite]

Someone's covering their ass folks, it's not impossible for a lower level employee to screw up like this, but highly unlikely.

Oversight, safeguards and supervision seem to be amazingly absent from these reports. The general populance isn't completely stupid (Getting there mind you), they know this and are making a bit of fun with it. What can you honestly do? You think you as an average citizen can go and make that difference? It would take you getting off your ass staring at this screen to do anything. Hell, according to these reports one man just helped to nearly bankrupt a major world bank and possibly a country, we normally have to "elect" a batch of senior Republicans and have their incompetent friends appointed to do that here in the states...

[Nick]

It’s interesting to see my fellow Anglo-Saxons getting excited about the Jérôme Kerviel story. I might be wrong, but I detect a feeling of moral & financial superiority over the lazy incompetent French.

It might be worth remembering though that incompetence & greed are universal. Northern Rock was hardly a good advert for British financial probity, and Citigroup, Merrill Lynch and Morgan Stanley have all had to sell sizeable stakes in their businesses to sovereign wealth funds to repair the ravages to their balance sheets caused by sub-prime lending.

What’s that proverb about people in glass houses?

[VINCE B]

Leave it to the French to celebrate a criminal. The guy is a common thief who stole for himself, not in the name of any cause. Yet, the French call him a hero. Given the fact that the French are some of the most self centered people on the planet, I guess it sort of makes sense. The "30 hour work week" comment was great. The French are the laziest people on the planet.

[EYGH]

Just a few info here for our extra-terrestrial friends from the US :

Société Générale despite the 7 billion loss is not bankrupted unlike a certain number of other banks in the US, UK, Spain or elsewhere.

Neither is France close to being bankrupted.

By the way isn't an American administrator involved in the Soc Gen scandal ?

[Pierre Bernardi]

Valentin, banning stock options is a non-starter (makes me think of Alex Ferguson's reaction to Michel Platini's suggestion that tackling in association football be banned) but before the crisis began, I naively thought that CDO-type activities were covered by Basle. So that's what off-balance sheet means then: 1) banks do what they like. 2) in any other circumstance, refer to rule one. However, a large number of off-balance sheet tricks have been returned to the balance sheets, which suggests that they should never have been of them in the first place. Which suggests that a very high percentage of the senior management of American banking establishment is guilty of fraud, in Azloon's sense (not to mention Mr Donnez-moi des Bouton).

[Capitalist]

Do you far left leaning loons really believe this dribble? How is it that you have come to believe that capitalism is the enemy. Every one has the same opportunity, just because some are too lazy to fulfill their potential doesn't make the rest of us evil because we rolled up our sleeves and got to work.

And yet you cheer when people who have worked for their money lose all of it. And why some may ask? Because you are bitter...plain and simple.

[Alex Winter]

France needs another revolution to cull the idiots.

[Johan]

The socialists are as stupid as ever. They think the lost 50 billion belongs to some evil capitalist sitting in a dark mansion atop some black mountain. Rather, that money belonged to average people saving for retirement and investors looking to create new jobs, both of which are now screwed.

That suits socialists just fine. They don't want anyone to make it. They want everyone to wallow in EQUAL misery.

[Blendi Progri]

Clicking on the link - about `the 30 hour week` - by CB...one goes into the Main page...then on the left, click:
The button- Le Story

Then one can see...

E-mail Jerome:jerome@jeromekerviel.com
Are you traing under pressure? Jerome understands Send your story now. Merci.
--------------------------------

Wonderful. I love it.
E-mail Jerome, he understands.
------------------.
Someone, somwhere in this blog said this happens: when banks leave huge funds to to ignorant 30 year olds that can`t even read a simple balance sheet and dont care about peoples lives ( more or less) .

Eh Jerome, Jerome... I have a feeling that even now Jerome doesnt really understand the implactions of his actions.

If left unchecked, massive funds like this became `virtual` and it feels like playing a video game where as long as one has credit, he can play forever.

he could be baffled too- is justifiable, in a way.

After this cools down, Jerome, can ask for his Computer back (with some credit too- not 4 billion of course, less) to resume his Play, after all his Human Rights (the only thing real to him) have been violated.

Count me in, I`m a Jero fan by now.
Give him back his computer, his old post and a pay-raise too.

Jerome Undestands!
brilliant.

[Blendi Progri]

http://www.drudgereport.com/

Rogue Trader becomes national hero in France...

right hand side link.

I just saw it now, well done Charles!

It is interesting to note that the Link doesn`t point to any singular article in the blog, but to all the blog page, where every title can be seen.

At the risk of being sentimental, a congrats is in order to my fellow blogers too, for their contributory contribution.

Next...well of course is Zhongguo Xinwenshe ;)
---------------------.
As an after though ,
I thought we were all alone in here...eccooo...now that Drudge `discovered` what we say, I promise to be more cautious and kind. Promise!

[Valentin]

I put that on purpose, stock options were ok in the beginning;
in today's globalized, hyper speculative finance stock options are not so much an incentive to good economic results, but more like a compulsion to stock performance, and even worse, to getting positive statements from all kind of "experts".
These modern kind of stock options led to the Enron disaster, to delocalizations, and in general to an "atrocisation" of finance capitalism. I know that's a popular leftwing line, still it does carry some truth, IMO.

[christopher muir]

What if Kerviel's bets had made the bank billions in profits? Anyhow, the future is probably predictable: many enquiries, resignations, a big trial, appeals, a prison term, fines, books and finally a movie deal (starring the dealer himself who may share Bernard Tapie's acting skills). That's how it goes nowadays.

[One_American]

If the socialists think that the capitalists are so bad, they should try living WITHOUT money.

But then, the socialists are only half-serious about their beliefs anyway.

[Sam Young]

I'm a hardcore socialist-hating, freedom-loving right winger, but i still share the delight of others in seeing the Soc Gen lose billions. It's because, like so many others, i hate banks for their outrageous fees charged for outrageous reasons, whilst giving such useless service and not appreciating years of previous custom. Let them suffer.
Daniel Bouton (the Soc Gen Manager) is on the way out, and with a bit of luck, a Chinese or Saudi Arabian Sovereign Fund is on the way in. After all, Soc Gen is now 50% less expensive to take over than it would have been this time last year. And it has some excellent know-how, notwithstanding this recent joyous event.

[Sam Young]

To reply to some of the comments about who loses out in this affair, i would like to suggest the following list of losers in this affair:

1) The Soc Gen bank. The bank will still make a profit of between 600 to 800 million, so it will survive, unless it is attacked by a market predator (which pushed the share price up 10.42% on Tuesday).

2) Soc Gen employees: At 7.5%, SG employees are the biggest single block of stakeholders.

3) Other owners of Soc Gen stock.

Regarding 2) and 3), there is no call for pity. Let us not be naive: stocks can be risky. Everyone knows this.

4) The State who instead of collecting 40% of 5 billion ( in company tax) will now have to make do with much less.

This event has no impact on Account holders nor on owners of Sicav (Mutual Funds); it was Soc Gen investing Soc Gen cash to make money for Soc Gen... and they got it so wrong.

To conclude, Jérôme Kerviel would cease to be a hero if the State had to bail out Soc Gen.

[azloon]

What a GREAT STRING !!!!!!!!!!!!!!!!!!

NOTHING LIKE IT IN THE TWO YEARS I'VE BEEN HERE !!!!!

i think our 'party' has been 'crashed' (hardly a recognizable name among the posters).

CB, many of these 47,000 americans dropping in, thanx to the mention of you in the drudge report, are potential future bloggers. this place could become a real "free-for-all." all i can say is 'bring it on.'

i am also quite happy to notice loads of 'redneck,' anti-french vitriol in these posts.

Terry, Rocket and I, may, in the future, be viewed as veritable diplomats by comparison, n'est-ce pas? OK, maybe not Rocket. :)

--------

re Kerviel as hero

yes, the french have an anti-capitalist streak, and that fact may account for some of this '15 minutes of fame' stuff that's going kerviel's way (none of these faux admirers will ever write or visit him in the bastille, i can assure you -- or even remember his name).

but, really i think most of it is just plain fun. most 18-year-olds don't have a clue about what any of this is all about. and i must say, the modern world of business, being the very hostile and competitive place that it is, doesn't look very hospitable to many young americans, and, i suspect, many young french as well.

i want a photo t-shirt of jkerviel that says, "what, me worry?"* (if we can find one of him smiling which so far i haven't).

* older americans, maybe brits too, may remember alfred e. newman of 'mad magazine' fame.

[YDrake]

It's a sad world where they throw you out of your home when you cannot meet the payments that some banker tricked you into. But you rip off the bank for seven billion dollars and they make you a hero. Young Jerome will presumably by on trial in about 2010 and be given a year or two suspended and a few thousand fine.

[David Thomspon]

Jerome is a hero , if by this event, we eventually find out more about the sleaze behind the smokescreen.
On the Friday night 12 days ago- he supposedly had 120,000 contracts - the question should be, as it is an exchnage these contracts were on - who was on the other side?
Why did they( those that were short such crazy numbers ) not cover ahead of a weekend and already a 5 per cent decline that week for indicies!
Is it one two a handful of counterparties, who walked away with upwards 4 Billionplus ! as we are told this is a zero sum game ?
Please investigate properly Soc Gen , unless of course this operation on a smaller scale had been going on for a long time prior- but even then - we should know more about why senior management let him punt the market in a very uneducated fashion? Yes Money did not drive him , but the power of trading and Trading volume!! - Well obviously his superiors failed , in not spotting his unsuitability for such work !This is not about anti French or pro French but if Banks are going to operate as Casinos , then we should know more ?

[Seb]

Thanks Azloon.
I was seriously starting getting worried I should search another blog for French news seen from the british viewpoint. I am interested in outside critiscisms, not "redneck vitriol" as you justly put it.
JK a hero for French. Hopefully not too many. I am curious to know how many t-shirts will be sold.
Well, at least we French do not believe that Elvis is still alive.

[Frank Upton]

I wonder whether some other bank bribed him to lose a billion euros to them.

[Dominique]

The only good thing about Kerviel's 15 minutes of fame is that they are encroaching Sarko's.

[john o'doe]

Defeated presidential candidate Ségolène Royal ENA demonstrated a novel approach Friday by calling for Soc Gen to pay back the 7 billion euros to the families the bank has plunged into debt by its excessive overdraft charges!

[Richard Huxley]

There are some nice kneejerk, typically melodramatic reactions here. I think the truth will come out, eventually. As Christopher Muir says..will probably end in a 'for tv' film. Although this could have happened anywhere and still might.

France is almost half socialist in thinking, whatever that is nowadays. I don't think this is all bad. In fact France is now suffering (to the glee of a few other nations) because it was in fact quite good to its population. I'm capitalist (i attempt to run a business) but enjoy the civility here.

I think the socialists are just grabbing their chance to make fun. They've had a tought time of it lately! I don't think any of it can be taken seriously.

[Tato Dulanci]

Wasn`t the money insured as it was in the film "The ladykllers"?
I wonder.

[azloon]

SEB

i and others have made french-tweaking jokes about JK's deteriorated mental state resulting from his thirty-hour work week. [too hard to resist :) ]

but, seriously, what's important about JK, and sarko for that matter, is that they are visable signs of the changing face of france. and it's a face that not all french find endearing.

france is joining the world, more often than not kicking and screaming, but joining they are. the french presidency, post-sarko, won't be the same.

neither will be the world of french finance post-JK.

[dot king]

The only comment I can make with any ceratinty is that I used to read "Mad" magazine and I remember Alfred E Neuman, but I can't decipher the connection . . .

[Valentin]

JOHN O'DOE:
"...by calling for Soc Gen to pay back the 7 billion euros to the families the bank has plunged into debt by its excessive overdraft charges"

Yup. That was a shameful day for France, and a sad for mankind.
(and a stern contradiction of Lily's claim that intelligence would have progressed at all)

[thinknoworpaylater]

SAM YOUNG - under the heading - other owners of stocks will be people who have invested in pension funds ( not directly under their control). They could lose a lot and they deserve some sympathy. AZLOON - my old friend- I dont think you will qualify for a diplomatic pass. But further you obviously enjoy confrontation (*bring it on*) - maybe its ann american characteristic its less obvious in the european comments (think Daniel Strohl). Anyway its clearly your metier. But you are just the same loons (you, Rocket and Terry) that you always were. It just brought out the best in you (?) This abrasive style is obviously fun for you but doesnt get down to the complexity of social/economic relations. You simplify and your solutions are always the same. Capitalism is wonderful and can do no wrong. The current problem is obviously systemic (maybe the the system is ahead of the controls) You love phrases like - *joining the world* as if the world (whatever that is) was simply your world. Consequently your view is always *over-determined* or just rigid if you like. Control and regulation are crucial in the banking system and we wil see it in the future- join the world!. I thought that RICHARD HUXLEYS commennts were balanced and sensible. The importance of an individual will fade - but after the current crisis I expect to see changes in the regulation system itself or we are all in for trouble.

[Lily]

"a stern contradiction of Lily's claim that intelligence would have progressed at all"

Lily doesn't claim it has. New Zealand researcher James Flynn has provided the evidence which is why the phenomenon has been dubbed 'Flynn effect' (I don't know whether France was included in the study, though).

[Josephine]

Actual money was made from these fraudulent deals, yes? Then where is the money? I've heard several reports claiming that Kerviel didn't benefit personally--can that be true? Am I missing something?

[azloon]

THINKNOW

you haven't mischaracterized me.

but i am afraid you mistake my 'metier' for ignorance of subject, perhaps failure to appreciate the complexity of problems.

as a former stock trader, i am certain i'm more willing than most to tolerate periods of financial chaos as preferable to bureaucratic attempts to regulate markets.

Kerviel's trading losses are a drop in the bucket compared to sums traded daily in the markets he was involved in. despite Valentin's "shame," JK is really is NO BIG DEAL (why in the world would Valentin feel 'shame' about kerviel's trading losses? are they cousins?).

i have never said that capitalism is "wonderful and can do no harm." in fact, its the worst economic system in the world, except for all the others.

tread very carefully in the area of regulation. self-policing is often preferable to state regulation. i will say tho, that by retaining it's CEO, socgen is showing it doesn't know how to hold it's executives accountable. this will just increase calls for regulation that may injure the entire system.

free flow of capital is what makes the world go 'round -- by allocating money to it's most efficient and profitable uses. state regulation impedes this process. i beleive it's best kept to a minimum.

btw, i also believe in the free flow of ideas. the louder and more impassioned the arguments on either side, the more likely a desireable compromise. polite disagreement doesn't interest me, as you may have guessed. :)

[Valentin]

"Lily doesn't claim it has. New Zealand researcher James Flynn has provided the evidence"

OWWWW I JUST NOTICED I forgot the wide grin smiley at the end of my previous post. Sorrrrry ! :P