Socked: Le Rogue Trader strikes again
January 26th, 2008Here we go again. Another “rogue trader” strikes at the heart of the capitalist empire this time racking up a fairly impressive $7bln odd loss. No that is completely out of this world. In fact it’s almost unbelievable…..he must have had some serious positions which only the 3 blind mice wouldn’t have noticed. Being French just adds to the frisson given they are supposed to be conservative players (which is not true at all) and gives the Septics something to stick to the Euro mob.
Naturellement the SocGen management disclaim any knowledge of this fraud. What do they think they get paid for? Certainly not for making money because they don’t. Their job is to manage traders and make sure risk limits are being enforced. I know this well since I was a trader who frequently ran up and bust risk limits and without fail would receive a phone call from somebody asking, politely, about the humongous $/Y position I has acquired. Positions always show up somewhere especially big ones. This one was a monster.
Bottom line: this stuff shouldn’t happen without someone knowing about it. Expect the usual cover up.
Tags: banking, financial crisis, markets
January 28th, 2008 at 4:02 am
Heh. What do you expect from an industry that brazenly encourages and rewards flagrant greed and dishonesty up to the highest levels.
I bet management wouldn’t have complained if the trader had GAINED $7 billion from an unauthorised transaction. lol
January 28th, 2008 at 4:03 am
BTW did you get my reply to the e-mail that I sent you? I’m checkin cos I’ve had issues with Gmail recently.
Cheers