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Rogue trader 'fooled' ex-boss

Paris - Former Societe Generale trader Jerome Kerviel used convincing lies to mask his risky, unauthorised bets, an ex-boss told a Paris court on Monday.

The 33-year-old Kerviel, whom SocGen blamed for a €4.9bn trading loss in 2008, made bets without bosses knowing, former supervisor Eric Cordelle added.

"Jerome was always able to come up with reasons, convincing explanations. He lied from start to finish and every time he said something, it was believable," Cordelle told the court in the Palais de Justice as Kerviel's trial enters its final week.

Although Kerviel has never denied his unauthorised bets that reached an estimated €50bn, he has insisted his superiors knew what he was doing. SocGen has argued Keviel acted alone and egregiously and should be punished.

Kerviel risks five years in prison and a €375 fine if found guilty of charges of breach of trust, computer abuse and forgery.

The trial is set to run until June 25.

Cordelle, who lost his job after the scandal broke in early 2008, was appointed head of the trading desk where Kerviel worked in 2007.

He admitted to the court he did not really understand the inner workings of the desk and therefore could not monitor it effectively.

"I didn't have the resources or the knowledge to do it. I didn't necessarily understand the trader lingo," he said, adding that the workload was so heavy there was no time to stop over a single anomaly.

Cordelle is appealing against his dismissal by SocGen in an employment tribunal, he told the court, citing "a lack of resources and training" at the bank.

Former SocGen chief Daniel Bouton is due to appear as a witness on Tuesday.

Bouton quit in 2009 after attracting heavy criticism of his leadership and handling of the Kerviel affair.

 - AFP

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