A French court has cut the damages owed by the former Société Générale trader Jérôme Kerviel from €4.9bn (£4.2bn) to €1m.
The appeal court in Versailles ruled on Friday that Kerviel’s reckless trades were “partly responsible” for the huge losses suffered by the bank in 2008.
It also ruled, however, that “deficiencies” in the bank’s management control and security systems contributed to the size of the losses, which Kerviel would have had no realistic way of repaying.
“I’m hoping to get to zero in the end because I still do not think I owe anything to Société Générale. The battle continues,” Kerviel told reporters following the ruling, which is open to appeal. The case “used to be about €4.9bn. It doesn’t exist anymore,” he said.
In one of the biggest trading fraud cases, Kerviel was sentenced to three years in prison for nearly bringing down the bank just before the onset of the 2008 financial crisis.
The 39-year-old was found guilty of forgery, breach of trust and fraudulent computer use for covering up trades worth €50bn, more than the market value of the entire bank at the time.
France’s highest court upheld Kerviel’s conviction and three-year sentence in 2014, but annulled the €4.9bn in civil damages, saying they were disproportionate and that Société Générale shared of responsibility for its losses.It also ordered a new civil trial.
Kerviel’s lawyer is now trying to get the criminal conviction overturned.
The legal saga has captured the national imagination. The battle is also about image and reputation for the bank and Kerviel, who has tried to portray himself as a victim of an improperly regulated banking sector and a crusader against the ills of the financial world.