October 7, 2010
Learning from the French approach to white-collar crime and sentencing
Forbes blogger Walter Pavl has this amusing new post titled "What Jerome Kerviel’s Sentence Could Teach Us In America." Here is how it begins:
Jerome Kerviel, formerly of Societe Generale SA, was convicted this week in France of fraud and sentenced to 3 years in prison and ordered to pay nearly $7 billion. Had Kerviel been sentenced under the U.S. Federal Sentencing Guidelines he would have received about 100 years, but the fine would have been roughly about the same. The only job that he could get to pay back that kind of money would be, well, a trader on Wall Street. So I don’t see him paying this back anytime soon.
What was interesting about this case was that Societe Generale was the victim here and had no hand in its own undoing. The sentence and the restitution fell solely on Kerviel and did not implicate the bank in any way. I pondered this and thought, “Now there’s another good idea that the French have that we need to bring here to the States…A villain.”
What we’re missing here in the U.S. is a good villain. A Jerome Kerviel for our own banking collapse. Bank of America, AIG, GMAC, Lehman Brothers, Country Wide, et al, failed because of placing poor investment trades, similar to those placed by Societe Generale, or should I say Jerome Kerviel. Each of these U.S. financial institutions needs to give up one of their young for the sake of solving the mystery of “Who done it?” None of the CEO’s of major investment banks seem to know who was responsible within their own organizations for the bad trades, they just happened. Congress could not even drag a single name of a villain out of these guys when they were being grilled on Capitol Hill.
October 7, 2010 at 07:40 AM | Permalink
TrackBack URL for this entry:
Listed below are links to weblogs that reference Learning from the French approach to white-collar crime and sentencing: