Jerome Kerviel faces testimonies of his ex-colleagues from Societe Generale by Zuzana Zelenakova

Societe Generale is one of the most prominent finance services companies in Europe, however its reputation has been seriously undermined back in 2008 when the bank lost 4.9 billion euros due to alleged fraudulent activities of trader Jerome Kerviel. The situation in the markets in 2007 and at the beginning of 2008 was quite stormy and series of fraudulent transactions got out of control easily. Now, two and a half year after the scandal, that was considered the biggest fraud in history, the case has gone to trial. On Thursday, 33-year-old Kerviel faced testimonies from his former colleaugues, while at the same time he tried to show that the bank managers were aware of his ! multi billion euro stock gambles. Jean-Pierre Mustier, former head of the bank´s investment division in which Jerome Kerviel worked called him a liar who took risks that “no bank in the world could take.” "I still don't understand why Jerome Kerviel did it ... and he has never said sorry," said Mustier in the court. "How can he say he did it for the good of Societe Generale, to earn it money? He is lying, like he has always lied." In response, Kerviel only repeated that his bosses encouraged him to take risks and pretended to see nothing as long as there was money coming out of it. One of his former colleagues that testified at the court, Salim Nemouchi, said that Kerviel “put in danger” the bank by making trades “for atmospheric amounts”. "I can't explain his actions. I am disappointed by his behaviour," he said. "All traders have limits they must respect." Kerviel admitted exceeding limits regularly, but he said it was a common pra! ctice. If he is convicted, Kerviel will face up to five years ! in jail and a fine of 375,000 euros.

related story (sgx17552): http://www.france24.com/en/20100610-paris-france-societe-gen...

by Zuzana Zelenakova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

BP loses one third of its market value. Residents of Florida facing another inferno. by Milota Sidorova

Speaking of catastrophe in Mexican Gulf, it is almost impossible to speak about consequences. One can, however guess they will be huge and reaching every aspect of human and natural life. Speaking of markets and the future of British oil giant BP, it is almost sure the explosion may cost the whole company. Even after six weeks, BP wasn't able to stop the leaking oil, the third failed weekend attempt stole the hopes. What was the reaction for the company facing civil and criminal investigation? BP shares failed more than 15 percent on Tuesday, but continued declining another 2.4 percent on Wednesday. The company lost around $67 billion (46 billion pounds) or about one third ! of its market value. The prognosis for success are low – the possible working cap mission is projected on August. Until then the company may be fataly hit. So far, the “responsible” price was totalled up to $1 billion, but the price for killing more than 200 kilometers of a coastline environment and destroying millions of residents living there would be probably innumerableFBI has begun the investigation against the company seeking for illegal behavior. However this could be just a matter of time, since president himself labeled BP attitude a “lax oversight”. Residents living near Mexican Gulf are facing their inferno, but the situation can be even worse with upcoming hurricane season. So far, the weater has been pretty much extreme this year and scientists suggest there will be more hurricanes, storms and tornadoes than the last year. Seen from longer perspective, the number of fatal weather collisions has been increasing past years. The oil l! eak combined with storms and tornadoes may destroy more than K! atrina w ith its deadly blow in 2005.

related story (sgx17473): http://www.france24.com/en/20100602-bp-tries-again-curb-oil-...

by Milota Sidorova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

BP shares dropped after another failed attempt by Milota Sidorova

If there was somebody thinking the oil rig crash causing the giant spill would be disasterous, he would be right. But the consequences of the biggest environmental catastrophe near the U.S. borders have been mounting and it is highly possible that they will be fatal. British oil giant BP has been failing for more than 6 weeks, being unable to stop the oil expanding from underwater well. The time projections for stopping the fuel are stretching as well. In the beginning it was several days, then it turned into 90 days, but even now BP representatives suggest the well could be cemented during August. So far social, environmental and economical consequences have been innumera! ble. The fact is the fishing and tourist industry has been frozen in four states. Yet, we don't mention dying ecosystems assuring climate and water reserve stability.The pressure has been rising in the Congress as well, led by President Obama who vowed to “bring all responsible” to face the justice. The criminal as well as civil investigation has been launched.The catastrophe is reaching to the markets – shares of the company have been declining continuously for weeks. As it became clear that the costs will exceed $1 billion, its shares dropped by more than 15 percent to 420 pence per share. The value of the shares is following every attempt to stop the oil. If it fails, so do the shares. The last “top kill” action took place on Saturday, but the mud attack remained of another disaster. The company succeeded just by slowing down the pace of leaking oil.

related story (sgx17451): http://www.france24.com/en/20100601-bp-shares-plunge-15-perc...

by Milota Sidorova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.