Rogue trader to cost SocGen $7bn
- Thread starter bigbiscuit
- Start date
The more I think about it, the more this story does not make sense.
1. We have a Guy on a fixed income
2. He takes a huge position
3. No one notices
4. When they do, they close it out over a US long weekend. And all in one day?
These seem to be the facts as we now know them.
The whole story is a farce.
1. We have a Guy on a fixed income
2. He takes a huge position
3. No one notices
4. When they do, they close it out over a US long weekend. And all in one day?
These seem to be the facts as we now know them.
The whole story is a farce.
so you think they are holding subprime assets and looking for an excuse to write them down where the CEO doesn't get his head handed to him?
-$7 billion?
And you guys thought marketsurfer was a bad trader!
And you guys thought marketsurfer was a bad trader!
exactly....$7 billion exposure from a salaried employee......crock of shit......that`s what compliance depts are there for.....he would`nt have been able to get past a $1million position let alone what they claim is ludicrous.......funny how these same things always happen over a long US weekend.
that pic is all too curious as well.......almost as clever as Bush sitting with a group of school children & reading a nursery rhyme when attacked.......hmmmm
tooooooo funny...hummmm soooooo true?
As dumb luck would have it, perhaps a la GS style, they'll find out next week that another rogue trader in the same building was the one taking the other side of those trades...
http://www.nytimes.com/2008/01/25/business/worldbusiness/25cnd-bank.html
As financial markets plunged on Monday, prompting anxious calls from the United States Treasury to the White House, no one quite seemed to know why things had become so unglued.
Maybe it was a looming recession. Or sinking home prices. Or the bloodletting on global stock exchanges.
Now another possible explanation has emerged: A French bank was frantically unwinding more than 50 billion euros, or $73.4 billion, in bad bets on stocks made by an unassuming junior trader.
Much of the sell-off of the positions accumulated by Jerome Kerviel, the rogue trader blamed for the $7.2 billion loss at Societe Generale, took place in the German market where he had wagered tens of billions of euros on the benchmark DAX index as well as the Dow Jones Euro Stoxx 50.
The DAX was the hardest hit among the major European major indexes, falling 7.2 percent on Monday alone, compared with 5.5 percent for the FTSE in Britain and 6.8 percent for the CAC 40 in Paris.
As financial markets plunged on Monday, prompting anxious calls from the United States Treasury to the White House, no one quite seemed to know why things had become so unglued.
Maybe it was a looming recession. Or sinking home prices. Or the bloodletting on global stock exchanges.
Now another possible explanation has emerged: A French bank was frantically unwinding more than 50 billion euros, or $73.4 billion, in bad bets on stocks made by an unassuming junior trader.
Much of the sell-off of the positions accumulated by Jerome Kerviel, the rogue trader blamed for the $7.2 billion loss at Societe Generale, took place in the German market where he had wagered tens of billions of euros on the benchmark DAX index as well as the Dow Jones Euro Stoxx 50.
The DAX was the hardest hit among the major European major indexes, falling 7.2 percent on Monday alone, compared with 5.5 percent for the FTSE in Britain and 6.8 percent for the CAC 40 in Paris.