Discussion in 'Trading' started by Copernicus, Jun 6, 2005.
Remember the guy that ruined Barings Bank? Nobody was watching him either.
Couple of things on this subject.
First, I am responsible for and monitor the trading records of those who work in my office. If we found an "error" of this magnitude in my office, I would be fired along with the trader who caused the problem.
In my opinion, there is NO EXCUSE for not monitoring the daily P&L of YOUR OWN OFFICE STAFF!
Since Mr. Tobias is one of the highly paid fat cat fund managers, instead of firing him, I would suggest he repay the investors from his own account.
This one goes up on our office billboard.
jim cramer must be smiling, showed a lot of affection for Seth Tobias in his book
How many other funds, banks, etc. have inadequate controls?
Sounds like he did just that...
Maybe it was Marketspammer.
"The company will reimburse clientele....."
I guarantee you that Tobias did not reimburse folks from his personal account. It is written off against account expenses over a period of time. Believe me.
Its basically the same thing. Since he runs the fund, he gets nearly all the profit after expenses. More expenses, less profit for him.
There was an article in the April/May Trader Monthly mag :
"Peterffy to CITI:No do-overs"
When regulators mull new rules, they often quietly consult Thomas Peterffy, the powerful founder of options-market-making titan Interactive Brokers Group. Peterffy, it seems, is a stickler for rules. When Citigroup recently made an inadvertent QQQQ order (a bad data feed led to an automatic fill on 950,000 contracts, leaving Citi holding an $18 million loss), two market makers, Wolverine and Morgan Stanley recognized the goof and agreed to bust up the trade, knocking Citi's loss down to &7 million. However, IBG's Timber Hill showed no such mercy. "The industry is aware of our position on busting trades, "a company spokeswoman says.-----
My point is, I'm glad they are consistent. The application says, there will be no margin calls, boom, you're liquidated, I'm glad they are as responsible as I am.
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