Much like the article posted yesterday about the over-reporting of the top 100 NASDAQ stocks to the shareholders, I think this story may have a gigantic impact on the market in the short term. Similar to the Baring Bank nightmare, this guy loses $750 Million (so far) from bad trading of derivatives for AIB ...anyway here is the story for those interested. (so much for our friends who want to get started in the banking end of trading derivatives).... NEW YORK (Dow Jones)--A rogue trader at a Baltimore subsidiary of Allied Irish Banks PLC covers up at least $750 million in losses and the bank's American Depositary Receipt dives over four dollars in New York trading. Observers are obviously worried about how widespread the loss could become throughout the banking system and the forex markets. But those observers should at least be hoping that AIB opens for trading Thursday - it's now trading around $19.69, a huge hit on the day compared with its Monday close of $23.55. The charts imply that the damage can't be reasonably assessed until the Thursday opening at earliest.
Don- That guy might be like Nick Leeson...but Allied Irish is a HUGE bank with many branchs throughout the UK...Barings was a relatively small INVESTMENT bank...so when Leeson lost 1billion, it killed them.....I don't think a big loss, even 700mill is gonna bring down AIB
This seem's like a repeat if the crash of 1929 Bad books so many loan's bank's having problem's, what next. It's seems to be feeding on itself. This is probably going to be a long bear market until all the evil is out of the way and priced in.
These one time losses are the writedowns on investments because of the tech bubble collapse correct? If so I think the whole argument might go away as proforma vs gaap numbers converge back to normal levels going forward. bwtdik? edit: csco just reported proforma/gaap numbers both @ .09 cents lol
"These one time losses are the writedowns on investments because of the tech bubble collapse correct? If so I think the whole argument might go away as proforma vs gaap numbers converge back to normal levels going forward. bwtdik? csco just reported proforma/gaap numbers both @ .09 cents lol" In the case of JDSU (which wrote down about 200 years of current earnings in one quarter last summer) that was certainly the story. I couldn't guess how much of it is simply dodgy accounting, instead. Yes, the CSCO way of reporting tickled my fancy as well! nitro