BLOOMBERG – A Societe Generale SA manager threatened to fire Jerome Kerviel in 2005 after the trader exceeded trading limits with bets on Allianz SE securities, according to a court document.
The document, which lays out the Paris appeals court’s reasons for releasing Kerviel from jail, also details several missed opportunities to stop Kerviel before he amassed unauthorized positions that led to a 4.9 billion euro ($7.5 billion) trading loss, the biggest in banking history.
Alain Declerck, a former Societe Generale trader, told magistrates Kerviel had raised concern after failing to declare bets that led to a gain of 200,000 euros. Declerck, who now works at HSBC Holdings Plc in London, said he told Kerviel he’d be fired if he went past his limits again.
“Jerome Kerviel was explicitly told by his superiors and Declerck himself during a special warning meeting that he’d be fired if he passed his limits again without permission,” the document said.
Declerck, reached by telephone, declined to comment.
