Kerviel and SocGen lawyers spar over tax deductions
Société Générale has recovered 1.7 billion euros of the losses caused by former employee Jérôme Kerviel's fraudulent activities in tax deductions, the bank's lawyer says.
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“It’s scandalous!” said Jérôme Kerviel’s lawyer Olivier Metzner on Sunday, criticising Société Générale for allegedly hiding that it had recovered part of Kerviel’s losses.
“The bank deceived the judges when it did not inform them of the tax deductions, it’s scandalous, almost fraud," he said.
In an interview on French public radio, Société Générale’s lawyer Jean Veil said that the bank’s dealings were totally transparent. He explained that the French bank had paid less tax because Kerviel’s fraudulent activities had reduced its gains in 2008.
On Tuesday, Kerviel was condemned to three years in jail for fraud and ordered to pay Société Générale 4.9 billion euros in compensation.
Kerviel brought the bank close to collapse when it was revealed that he had lost 4.9 billion euros in illegal betting on financial markets.
Although the bank claims it was unaware of Kerviel’s dealings, the 33-year-old former trader says his bosses encouraged him to break the rules as long as the money was rolling in.
The French bank says it will spare Kerviel from paying the full amount awarded in compensation, which is far beyond his means.
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