CFTC charges Citi trader stole $300,000 from firm

Discussion in 'Wall St. News' started by startraitor, Apr 15, 2011.

  1. This is probably a stupid question but how does this actually help him?

    Sure, if the Citi acct loses value he profits in his PA - but if the Citi acct gains, he loses 1:1 in his PA and gains his payout % per $ of P/L, a net loss (or vice versa, just using example from the story).

    ...they didn't mention options, and I realize you can have stops etc, but there's still some market risk with the added risk of losing your job and going to jail. I guess they did say he worked at Citi.
  2. They were illiquid back month contracts I am sure so he did it when he was the only one on the b/a on both sides.
  3. Ok, so another stupid question - how does that help him? To profit, he'd still need to shift the b/a at some point, even if it's just a few ticks, right?

    I guess that's not considered a large market risk (considering he is the market) but it just seems so overwhelmingly stupid for such little payoff.
  4. heech


    Platinum is trading at $1 during the day. Overnight when markets aren't being quoted, his personal account buys from the Citi account at $0.98. Rinse and repeat.
  5. how many fugging crooks are there? I'm losing count, and I was prepared to count on all fingers and toes.

    start hanging these bastards in the town square or you'll never be rid of it.
  6. Haha, yea, not sure what I was thinking. Thanks.:D