1. Who are the stakeholders in this case?
2. What did Kerviel do wrong?
3. What did SocGen do wrong?
4. Identify the ethical violations that occurred in this case.
5. Would the outcome have been different if Kerviel’s trades in European futures had worked out?
6. What actions could SocGen have taken to prevent such large losses?

In 1995, Barings Bank PLC, which proudly boasted of its position as banker to the Queen of England, collapsed after announcing trading losses of £827 million. The majority of those losses (greater than $1 billion) were attributed to one trader, Nick Leeson, who had been promoted from a back office clerical role to a position as a futures trader. Leeson had used his knowledge of back office procedures to hide the size of the trades he was placing on the Japanese stock market. The reward for his efforts was a six year jail sentence. Fortunately, Barings’ clients were in no danger because the losses involved only Barings’ own trading accounts.