Jérôme Kerviel verdict on 5th October

French "rogue" trader Jérôme Kerviel will have to wait until the autumn to discover if he will be sent to jail for four years and ordered to pay back Société Générale the nearly €5bn it claims he lost the bank.

In his final defence, Kerviel's lawyers, described the accused as humble "young Breton", passionate about banking and economics who was corrupted by Société Générale, a pawn in a global frenzy for profit and called for him to be cleared of all charges.

"Jérôme Kerviel is not a fraudster. He was trained, formed by Société Générale, deformed if you will," said the defence lawyer Olivier Metzner, adding: "Jérôme Kerviel is the creation of Société Générale."

Metzner, a heavyweight at the French bar, asked: "Who are you Société Générale?", echoing the question "Who is Jérôme Kerviel? asked by the judge Dominique Pauthe at the start of the trial.

Metzner concluded that Kerviel was being made a scapegoat for the global financial meltdown.

"When everyone is winning, nobody minds. When everyone loses, there has to be someone – just one – found guilty," he said before sitting down.

Metzner called for him to be acquitted on charges of abuse of confidence, computer hacking and falsification of records.

Kerviel had admitted making unauthorized bets on the stock market; at one point he was trading €50bn, more than the bank was worth. But he insisted his bosses knew what he was doing and encouraged him to take risks in pursuit of profits. The bank denied this and accused him of being a "manipulator, a trickster and a liar" who caused a "planetary trauma" that almost brought down one of France's oldest banks. Asked by the judge at the end of the trial if he had anything further to add, Kerviel said he did not.

Kerviel joined Société Générale in 2000 in its back office, but was promoted to the trading floor in 2005. In his first trading year, he made the bank €5m, rising to €12m the following year. In 2007 he made €1.5bn, but declared only €55m of this hoping to carry the rest over to the following year.

Most of his extraordinary gains were made through speculative deals which he claims traders knew were not officially allowed but were tolerated as long as they turned a profit. But in January 2008 Kerviel's complex web of hidden deals began to unravel when Société Générale discovered he was involved in trades worth about €50bn more than the bank's market value. In selling off Kerviel's trades over a three day period when the global markets were dropping, the French bank lost €4.9bn.

The court will announce its judgment on 5 October, said Pauthe. If found guilty Kerviel faces a five-year sentence – one year suspended – and a €375,000 fine. The bank has claimed €4.9bn it lost in damages.

Securities and Exchange Commission to pay $755,000 damages to ex-lawyer

A former lawyer for the Securities and Exchange Commission (SEC) who claimed he was unjustly fired after trying to investigate an insider trading ring is to receive $755,000 in damages.

Gary Aguirre, who was fired by the SEC in September 2005, alleged that he was let go by the organization after attempting to probe trades made by hedge fund Pequot Capital Management.

The ex-lawyer claimed that senior officials at the regulator prevented him from interviewing John Mack, an executive who at the time was a candidate for the role of chief executive officer at Morgan Stanley.

It was alleged by the legal expert that his determination to pursue the investigation led to his eventual dismissal by the SEC. The SEC’s payout will include the cost of his legal fees and salary equivalent to that of four years and ten months.

John Nester, SEC spokesman, said: “The settlement resolves all outstanding litigation between the parties and reflects the agency’s determination to focus on its core mission of protecting investors.”

In May Pequot Capital and Arthur Samberg, the hedge fund’s founder and chairman, agreed to pay $28 million in fines to the SEC to settle charges of insider trading in relation to shares in Microsoft Corp.

Ex-Société Générale banker fined for insider trading

Jean-Pierre Mustier, former head of investment banking at Société Générale, has been fined €100,000 for insider trading by France’s financial regulator.

According to AMF, the trader was found to have used insider data to inform the sale of shares from Société Générale in August 2007. The sale was made before the start of the subprime mortgage crisis, which pre-empted the global financial crash. Mr Mustier, who resigned from his position with the bank in August 2009, is expected to file an appeal against the ruling by the AMF.

The AMF said in a statement that “the level of Mr Jean-Pierre Mustier’s responsibilities imposed on him” a duty to not to sell the shares when he did.

Mr Mustier was in charge of Société Générale’s investment banking unit during the period when Jerome Kerviel worked with the firm.

Doha Bank launches mobile money service

Vodafone and Doha Bank have partnered for the launch of a mobile money transfer service for Qatar customers. According to the official statement the service is scheduled to go live early next year. Using it customers will be able to send money to friends and family overseas, or locally, via a mobile phone.

Customers will be able to apply for a Vodafone Money Transfer (VMT) account from Vodafone Qatar in order to avail themselves of the service. After the registration customers can load money onto their mobile phone from Doha Bank e-branches or directly via a bank transfer.

With digital money on their VMT accounts customers can initiate local or abroad transfer or use these funds to pay for goods and services at local shops. Until e-money is transferred or spent it is stored for customers with Doha Bank, meaning they can also have the option to get it back as cash.

The service will be tested over the next few months to gain Qatar Central Bank approval prior to a commercial launch.

Huge IT failure at Singapore bank

One of Singapore's largest banks suffered a major IT outage this Monday that took down its computer systems for seven hours. The outage knocked DBS Bank's back-end computer systems offline, leaving its customers unable to withdraw cash from ATM machines on Monday morning.

"We first knew of the problem at 3:00 a.m. (Singapore time) and by 10:00 a.m., all our branches and ATMs were fully operational. We are conducting a full investigation into the cause of yesterday's problem, thus will not be in a position to comment much about the cause at this point in time," wrote Jenny Lee, a spokeswoman for the bank, in an e-mail response to questions on Tuesday.

The outage affected all of DBS' consumer and commercial banking systems, but no data was lost during the system failure, she said.

When DBS branches opened at 8:30 a.m. Monday, the bank was able to accept cash cheques- personal cheques made out to 'cash' - worth up to S$500 (US$359) until systems were restored, DBS said in a statement. Customers could also make cash withdrawals over the counter, and branches stayed open for an extra two hours, until 6:30 p.m.

While the root cause of the outage remains uncertain, DBS is investigating the system failure with help from IBM, which runs some of the bank's IT operations under an outsourcing contract.

"The bank has multiple levels of redundancy to protect against such occurrences and this is the first time a problem of this nature has occurred. We are now conducting a full scale investigation with our main vendor IBM," said David Gledhill, managing director and head of group technology and operations at DBS, in the statement.

It wasn't immediately clear why the bank's backup systems didn't prevent the outage.

The collapse of DBS' IT systems caught the attention of the Monetary Authority of Singapore (MAS), the country's central bank, which oversees the financial services industry in the Southeast Asian city-state.

"As part of IT and operational risk management, banks are required to investigate promptly the causes of system breakdowns and take immediate measures to rectify system failures and restore customer services. Subsequent action is also required to strengthen the system and prevent future recurrence," an MAS spokeswoman said via e-mail.

Banks in Singapore are required to follow technology risk management and computer security guidelines issued by MAS that are designed to ensure the "robustness and resiliency" of banking and finance-related computer systems. "As part of its supervision of banks, MAS assesses banks' compliance with these requirements, and will take appropriate supervisory action where necessary," the spokeswoman said.

Changes to US Payment System Risk Policy

The US Federal Reserve will implement changes to its Payment System Risk (PSR) policy in early 2011. The revised PSR policy explicitly recognizes the role of the central bank in providing intraday credit to healthy depository institutions predominantly through collateralized daylight overdrafts. The policy encourages institutions to pledge collateral to cover daylight overdrafts by providing collateralized daylight overdrafts at a zero fee and by raising the fee for uncollateralized daylight overdrafts to 50 basis points.

A specific implementation date will be announced at least 90 days in advance.

In anticipation of depository institutions' changing needs for collateral management under the revised policy, the Federal Reserve, in collaboration with the financial industry, has assessed and identified opportunities to improve System operational systems. The Reserve Banks have been implementing enhancements to their own operational systems and processes that will improve the efficiency and effectiveness of pledging, withdrawing, and monitoring collateral. Many of these operational improvements will be available to institutions on or before the implementation date of the PSR policy changes.

British 'Ponzi scheme' defendants fined £115m

Three men accused of running the UK's largest-ever Ponzi scheme have been ordered to pay £115 million to the Financial Services Authority (FSA).

It is claimed that John Anderson, Kautilya Nandan Pruthi and Kenneth Peacock – who ran Business Consulting International – took up to £84 million from clients including celebrities and sports stars, using new investors' cash to pay returns out to older ones. hey were offering investors returns of up to 20 per cent a month, reports BBC News.

While the police investigation into their activities continues, a High Court hearing has ruled that they were unlawfully accepting deposits without FSA authorization.

As a result, Pruthi has been ordered to pay £89.7 million, Anderson £13.1 million and Peacock £11.6 million. The FSA said that despite the ruling, it would be unlikely investors will be repaid for their losses "in part or at all".

Margaret Cole, director of enforcement and financial crime at the FSA, said: "This case emphasizes the importance of taking care to ensure that any firm or individual consumers deal with are authorized or approved by the FSA."