SocGen's €4.9 Billion Nightmare: Inside the Rogue Trades That Nearly Broke a Banking Giant

2. The Trades and the Tactics

Kerviel’s strategy was risky yet straightforward: He bet on the future movement of stock markets. The problem was the sheer size of his bets, which exceeded the bank's entire market capitalization. Kerviel used tactics like creating fake trades to cover his unauthorized positions and avoid getting caught. He also exploited weaknesses in the bank’s control systems, and since the bank processed high volumes of trades daily, his actions often went unnoticed.