- ORIGINAL NEWS
‘Trader justice’: Ex-SocGen trader fired for risky bets claims he was made a ‘scapegoat’
- SUMMARY
Former Societe Generale trader Kavish Kataria has accused the bank of scapegoating him for unauthorized risky trades.
He claims that his superiors in Hong Kong and Paris were regularly informed of the profits and losses on his trades.
Kataria was fired after an internal review, along with his team head, Kevin Ng.
Societe Generale has stated that they identified an isolated trading incident that had no financial impact and has taken appropriate corrective measures.
Kataria insists that his trades were within the bank’s risk tolerance and were auto-booked.
He says a daily email was sent to the team detailing the trades.
He believes that the bank’s lack of a response implies they were either negligent or incompetent in monitoring his activities.
Kataria has joined a growing number of former traders who claim to be unfairly dismissed as scapegoats for trading losses.
He has called for better regulation in the trading industry to protect traders’ rights.
Societe Generale has not commented on Kataria’s LinkedIn post but has said that its strict control framework allowed them to quickly identify and mitigate the incident.
The bank has also reported that they experienced a 22% decline in first-quarter net income, with losses primarily stemming from retail banking and fixed income trading.
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“A former Societe Generale trader who was fired for unauthorized risky bets has lambasted the French bank for making him a “scapegoat” and failing to take its share of responsibility.”
“Instead of taking the responsibility of the lapse in their risk system and not identifying the trades at the right time they fired me and terminated my contract”