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

4. The Legal Battle

The legal fallout was just as dramatic as the scandal itself. Kerviel was arrested and charged with forgery, breach of trust, and unauthorized use of the bank’s systems. He was sentenced to five years in prison, with two years suspended, and ordered to pay back the entire loss amount. However, surprisingly, an appeals court later reduced the damages to €1 million, ruling that the bank was partially responsible for the loss due to its inadequate controls.