France

Former SocGen trader Jérôme Kerviel was today sentenced to five years in prison for the rogue activities which cost the French bank €4.9bn. Here is a recap of what the bank calls 'an exceptional fraud'.

Jérôme Kerviel, the rogue trader who almost sent French giant Société Générale to the brink of collapse, has been sentenced to five years in prison and told to reimburse the bank €4.9bn.

French MEPs may veto the Alternative Fund Managers Directive (AIFMD) including a key provision for passporting of investment products, which would allow fund managers to sell products across Europe.

France has reduced its economic growth forecast for 2011 by 0.5% to 2% following a meeting between President Sarkozy and top finance ministers.

OBSR on Europe

ASSET ALLOCATION

EUROPE

Britain and France are at odds with other European Union countries over plans to insure against future bank failures, in another sign of the problems in trying to forge a common response to the bloc's economic woes.

French President Nicolas Sarkozy threatened to exit the euro unless German Chancellor Angela Merkel backed the EU's €750bn safety net for the single currency.

Gordon Brown believes the large economies are close to agreeing a global tax on banks which would cost the financial sector billions of pounds a year - but he played down expectations of a final deal at the next G20 meeting in June.