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

3. The Discovery and the Aftermath

The fraud came to light in January 2008 when Société Générale noticed unusual trading activities connected to Kerviel. The bank was forced to unwind its positions, resulting in a multi-billion-dollar loss. The aftermath was brutal: the bank’s shares nosedived, and it had to raise capital to cover the losses. Société Générale’s reputation took a significant hit, and both regulators and investors placed the bank under intense scrutiny.