ON THE MONITOR
Electronic Behavioral Analysis Can Zero in on Fraud
June 25, 2010
As the trial of Jerome Kerviel, a former trader at Societe Generale in Paris, came to a close on Friday, there is plenty of talk on the lessons which firms should learn to avoid a similar scam.
The French bank lost $6 billion when it had to unravel Kerviel’s trades in January 2008. Kerviel faces up to 5 years in prison and a fine of up to $461,000 for forgery, breach of contract and unauthorized computer use. A verdict is expected Oct. 5.
One way to stop a rogue traders in their tracks: improving trading and operational risk controls which even SocGen’s internal investigation now concedes were sorely lacking. For instance, simply insisting that Kerviel take two weeks in a row of vacation could have and should have led to discovery to the riskiness of the bets he was trying to hide.
THE WEEK AHEAD:
MONDAY, JUNE 28
Through July 1, Mandalay Bay Resort, Las Vegas
EVENT: International Society for Technology in Education 2010
Through July 1, Colorado Convention Center, Denver
TUESDAY, JUNE 29
EVENT: SEC Enforcement: A National Focus from Philadelphia
9 a.m. – 1:15 p.m., SEC offices, Philadelphia
EVENT: Private Equity Software and Service Provider Showcase
8:30 a.m. – 7:00 p.m., Renaissance Chancery Court, London
WEDNESDAY, JUNE 30
OPEN MEETING: “Pay to Play” Practices by Investment Advisers
10 a.m., SEC Headquarters, Auditorium, Room L-002.
THURSDAY, JULY 1
DATA: Initial Unemployment Claims
8:30 a.m., U.S. Department of Labor
THE WEEK THAT WAS:
Reform Bill Remains Open to Interpretation, Industry Says (S.I.N.)
What Might Systemic Risk Regulator Want to Know (S.I.N.)
The 'Cloud' for Market Data is Sunny (S.I.N.)
Hidden Fields May Not Hide Traders' Losses (S.I.N.)
STAC Releases Benchmark for Measuring Market Data Handling (S.I.N.)
Endgame: After 20-Hour Session, Reform Talks Yield Final Bill (American Banker)
Assessing Winners and Losers in Final Reform Bill (American Banker)
Why banks aren't afraid of reform (MSN)
U.S. Growth Revised Down Again (WSJ)
