Kerviel: L'outsider and Rogue Trader: One Trader, 50 Billion

Trader's Film Library #39 · Frauds and scandals. The most famous “rogue trader” after Leeson, and the dispute over who was really to blame.

Original title: L'outsider · Kerviel: Un trader, 50 milliards · Type: film and documentary series · Created by: Christophe Barratier (film), Fred Garson (serial, 2024) · Usefulness for traders: ★★★★☆

What it's about

The story of Jérôme Kerviel, a trader at the French bank Société Générale who in 2008 hid positions worth about €50 billion. Unwinding them cost the bank about €4.9 billion. The feature film “L'outsider” (2016) shows his career, and the Max documentary series (2024, 4 episodes) gives a voice to Kerviel, his superiors and experts.

What it has to do with markets

The affair involved European stock index futures and fictitious trades meant to conceal the risk. Kerviel claims his superiors knew what he was doing. The court found him guilty, and the dispute over the bank's responsibility went on for years.

Lessons for traders

• risk limits only make sense if someone actually checks them
• when you're making money, nobody asks about risk – that's a trap too (outcome bias, Atlas of biases #28)
• position size has to match your capital, not your ambition

What to watch out for

The feature film is less well known. The documentary series gives a fuller picture of the dispute.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

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The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.