Jérôme Kerviel the 'Rogue Trader' of Société Générale: Bad Luck, Bad Apple, Bad Tree or Bad Orchard?

The Company Lawyer, Vol. 32, No. 12, pp. 355-362, 2011

13 Pages Posted: 2 Mar 2012

See all articles by George Gilligan

George Gilligan

University of Melbourne - Centre for Corporate Law

Date Written: September 20, 2011

Abstract

Rogue trading is generally understood to be unauthorized trading made by an authorized employee on behalf of their employer. In the last twenty years there have been numerous and very costly instances of rogue traders such as Nick Leeson of Barings Bank, Yasuo Hamanaka of Sumitomo Corporation and more recently Jérôme Kerviel of Société Générale. This article examines the Kerviel/Société Générale and other rogue trading scandals. As the article title indicates, rather than accept the notion that these rogue trading scandals are simply due to individuals “gone bad”, the analysis considers what may be the normative and structural drivers that may contribute to rogue trading disasters.

Keywords: rogue trading, governance, financial sector

JEL Classification: G18, G21, G24, G30, K22, K42

Suggested Citation

Gilligan, George, Jérôme Kerviel the 'Rogue Trader' of Société Générale: Bad Luck, Bad Apple, Bad Tree or Bad Orchard? (September 20, 2011). The Company Lawyer, Vol. 32, No. 12, pp. 355-362, 2011, Available at SSRN: https://ssrn.com/abstract=2014487

George Gilligan (Contact Author)

University of Melbourne - Centre for Corporate Law ( email )

185 Pelham Street, Carlton, Building 106
Victoria 3010
Australia
+61 3 8344 1079 (Phone)

HOME PAGE: http://www.law-cclsr@unimelb.edu.au

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