The Ultimate Revenge Trade: Ex-Goldman Trader 110,000 emini ES position

[Syprik]

This may take the cake for the most egregious revenge trade I've ever come across.

Cliff notes to prosecution complaint & BloombergTV: His entire desk had around 10-12,000 emini ES position limit. His emails/calls with internal risk stated he was long his limit of $65MM, or ~950 ES. 1000-2000 per trader in this type of unit was not unreasonable. Quite a Houdini trick to get yourself to 100x your normal limit.

Was facing a loss of bonus due to poor performance earlier in 2007. He likely figured: only have a few wks until end of quarter, 20 ES pts per contract gets me back on top, letz roll em. ES proceeded to drop 40 handles 2 proceeding sessions following Dec 13. Ouch. They must have cycled out the 110,000+ ES position over the 14th and open of 17th.

Got fired, then worked at Morgan Stanley for another 4yrs -> I swear, only does this happen on Wall St.

Same bewildered expression when he booted up his terminal on that bloody am of the 14th?

http://blogs.marketwatch.com/thetel...hew-taylor-tried-to-regain-his-goldman-bonus/

http://www.bloomberg.com/news/2013-...s-trader-to-plead-guilty-his-lawyer-says.html

 

[nazzdack]

Johnny Depp?

 

[DT-waw]

thats how big firm hire traders.
they dont have the slightest idea how to recruit traders!!!

let the stupidity roll.
the more suckers like these, the better for me

 

[marketsurfer]

Wall Street rewards those who take huge risks-- win or lose. Traders who lose huge have an easier time raising capital than their risk adverse comrades and are much more respected. The street embraces RISK, not scaredy cats. It's just the way it is. surf

 

[Algo_Design_Kid]

Quote from DT-waw:

thats how big firm hire traders.
they dont have the slightest idea how to recruit traders!!!

let the stupidity roll.
the more suckers like these, the better for me

Who in the hell just gives people firm capital to trade however the want like that in the market? I didn't think this type of shit was even real.

 

[marketsurfer]

Quote from Algo_Design_Kid:

Who in the hell just gives people firm capital to trade however the want like that in the market? I didn't think this type of shit was even real.

Folks who know that big risk is needed for big rewards and can absorb the blowups searching for the big wins.

Take a look at any trader who lost huge money, they bounce back with even more capital to risk. The street puts an almost mythical importance on risk taking and those who can do it are the gods and amply rewarded.

There is no upside to churning and being afraid. Wrong business, and will only make your broker rich--not your clients or yourself.

surf

 

[gmst]

Quote from marketsurfer:

Wall Street rewards those who take huge risks-- win or lose. Traders who lose huge have an easier time raising capital than their risk adverse comrades and are much more respected. The street embraces RISK, not scaredy cats. It's just the way it is. surf

This is not taking huge risk - this is lying. GS should have prosecuted this guy and this guy should have been in jail just like Nick Leeson and company.

How much meriwether raised the second time post LTCM?
How did the Matador size compared with the AUM under Vic's management before his blowup?

At wallstreet people get fired for losing big money. Nick Leeson, The guy behind SocGen's mess, UBS guys who lost big money - all got fired. Lucky guys who hid their trades wrote books and made documentary after that whereas unlucky ones went to jail.

Surf - You are a long term journalist. Think before you post.

 

[atticus]

Quote from gmst:

This is not taking huge risk - this is lying. GS should have prosecuted this guy and this guy should have been in jail just like Nick Leeson and company.

How much meriwether raised the second time post LTCM?
How did the Matador size compared with the AUM under Vic's management before his blowup?

At wallstreet people get fired for losing big money. Nick Leeson, The guy behind SocGen's mess, UBS guys who lost big money - all got fired. Lucky guys who hid their trades wrote books and made documentary after that whereas unlucky ones went to jail.

Surf - You are a long term journalist. Think before you post.

It's not a crime to lose money; it's a crime to hide the position. The prosecution rate rises proportionally to the size of the loss. Hilarious that the lawyer states that Taylor will be working in finance after this is "sorted out".

 

[marketsurfer]

Quote from gmst:

This is not taking huge risk - this is lying. GS should have prosecuted this guy and this guy should have been in jail just like Nick Leeson and company.

How much meriwether raised the second time post LTCM?
How did the Matador size compared with the AUM under Vic's management before his blowup?

At wallstreet people get fired for losing big money. Nick Leeson, The guy behind SocGen's mess, UBS guys who lost big money - all got fired. Lucky guys who hid their trades wrote books and made documentary after that whereas unlucky ones went to jail.

Surf - You are a long term journalist. Think before you post.

I didn't read the article-- but yes, if fraud was involved the trader is finished. I am talking about clean losses, not fraudulent ones.

I am not 100% certain but Matador I think was abotu 500 million- which is substantally larger than his first fund. Secondly, As near as I can tell, JM raised about 30 million for his third try--- did he close down?

In addition, lose big once, be given a second chance with even more money than before-- lose big 3 times--- the verdict is still out on that one!

surf

 

[gmst]

Quote from atticus:

It's not a crime to lose money; it's a crime to hide the position. The prosecution rate rises proportionally to the size of the loss. Hilarious that the lawyer states that Taylor will be working in finance after this is "sorted out".

Exactly. This guy hid his position and lied about his true risk. Not much to think for the management - straight firing offence.