Mar 18, 2008 3:00 am US/Pacific
France's $7 Billion 'Rogue Trader' Free
PARIS (AP) ―
A French court on Tuesday ordered the release of a jailed Societe Generale trader blamed for multibillion dollar losses at the bank, a spokesman for the trader said.
Jerome Kerviel was expected to leave Paris' grim La Sante prison later in the day. He has been held there since Feb. 8. Spokesman Christophe Reille did not elaborate on the order to free Kerviel.
Investigators say they wanted to keep him jailed to prevent him from speaking with accomplices - if he had any. Kerviel maintains that he acted alone. His lawyers argued that Kerviel has cooperated with investigators, has shown no signs of wanting to flee France and could in no way hinder the investigation by being released from prison.
"We were expecting this decision; we were hoping for it," said Kerviel's lawyer Elisabeth Meyer. "The court listened to us."
Societe Generale did not protest the ruling. A lawyer for the French bank, Jean Veil, called it a "very balanced decision" that will allow a "calm and secure" investigation. He noted the decision includes strict judicial surveillance.
Kerviel has to surrender his national identity card and his passport and is forbidden from leaving the Paris region or entering trading floors or stock exchanges, according to a judicial official. The official spoke on condition of anonymity because the investigation is ongoing.
He is barred from meeting certain people, the officials said, without giving names. He has to report to police once a week.
Societe Generale blames Kerviel for allegedly unauthorized trades that cost it more than $7 billion.
Kerviel faces preliminary charges, filed Jan. 28, of forgery, breach of trust and unauthorized computer activity.
Although Kerviel has said he acted alone, he also said his bosses at Societe Generale must have been aware of his massive risk-taking, and turned a blind eye as long as he was making money for the bank. Investigators want to determine what Kerviel's colleagues and superiors knew about his trades.
At least two people who worked with Kerviel have been questioned and released.
A preliminary internal probe by Societe Generale found no evidence that anyone helped Kerviel hide his positions. The report said bank officials failed to follow up on 74 warnings about questionable trades, uncovering Kerviel's positions only on the 75th.
The decision about whether to allow Kerviel to go free had been expected Friday but was postponed.
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