Maybe - read the NYT piece this morning and forget about the loss at the end for the time being. Instead look at the trades last fall - up 2B? They either missed the stunning performance or knew it - I cant tell which.
You are right DONT, management needs to burden their responsibility of very inadequate management and lacking internal controls. Any bank that allows these 'so called' sized bets to be able to be exercuted in the first place is not a well run company. Get rid of Socgen's management, auditors and internal risk experts.
1 Soc Gen knew the position Friday night (and others on the desk) 2 Soc Gen HAD to unwind across all major EUR Indexes Monday 3 Asia sold off Hard Sunday night on a coming US Holiday !! WTF ! 4 US Globex indexes went Limit down out of hours ! WTF ! 5 Fed Emergency 75 bps cut - earler then planned for sure but Fed Cut because or Jerome ! - some folk knew about the fourthcoming unwinding for sure at socgen, acting via spreadbet firms here in the U.K. - same as Leeson and his Nikkei punt, Barings considered it for 24 hrs , and then only acted meanwhile the pit hammered his Nikkei positions, they all fokkin knew in the pit there was a massive naked net long out there. his losses went 10 fold south as barings considered what to do ! same old same old
Could you please elaborate re; 'some folk knew..spreadbet firms etc. Also, didnt an earthquake in the city of Kobe cause the Nikkei to gap down large pre market therebye causing Leeson to bail? Regards.
large volumes in cash EUR Index bets out of session hours. - they we're not asian hedges ! earthquake - yes and then they waited a day while the margin calls came
there was no relevant volume in pre-market sessions before the big plunge. there is no indication in the trading activity that signals insider info. see dax action throughout the week with pinpointed volume spikes. My guess is sogen had around 100.000 dax lots to unwind.
- did you see the volume in CFD/spreadbet markets in the early hours ? do you really know what insider trading looks like ? .. please elaborate ?
there's no way a sudden surge in cfd spreadbetting or other equivalent vehicle would not raise the volume of the dax fut trading on the eurex. all bets in alternative markets are always hedged against in the most liquid and inexpensive "primary" market. if you're talking about some follows shorting 10-100 lots then i agree that might have happened. but i dont see any action pertaining to massive insider information in pre-market based on eurex activity. i am attaching the chart once again.
I heard he realized he started getting rolled by a couple of American traders. Not being able to accept the fact that Americans got the best of him, the $8,000,000,000 in revenge trading finally caught up with him. Typical Frenchie. I'm suprised we don't bail them out of this one.