http://business.timesonline.co.uk/t...ectors/banking_and_finance/article3257468.ece A good in depth article about how he thought he was onto a brilliant trading strategy
Is Jerome Kerviel becoming a celebrity? http://business.timesonline.co.uk/t...ectors/banking_and_finance/article3257468.ece "Kerviel may have lost his original Facebook friends but he has acquired a peculiar following on the internet. By yesterday afternoon there were 20 Facebook groups dedicated to him. The Jérôme Kerviel Fan Club had more than 700 members. " "About 10 fake profiles were set up, placing him everywhere from Paris to the Dominican Republic. A separate website, Roguefrenchbanker.com, was registered on Thursday and by yesterday was festooned with advertisements inviting surfers to âtry your handâ at stock market trading."
how much was the loss by the rogue trader? how much was lost by the bank during the unwinding of the trades?
So he did nothing wrong. He just applied the rule of 10% cut losses. Even most of us here are not able to apply this rule. So may the lost is widen than this guy if it were in hand of one of ET member.
What if it's the other way round and the guy was up $7bn. Will they let him keep the trade or still turn him in to the police?
that`s the other unusual part to this story as he stood to gain nothing...........as a trader,the first thing you ask is R/R......why risk without reward?
"Bouton said Kerviel had been betting throughout 2007 that markets would fall â a winning position. But the trader had overstepped his authority and was wagering much more money than he should have, Bouton said. So at the beginning of January, Bouton said, the trader voluntarily created losing positions, to neutralize his earlier gains and cover his tracks." http://ap.google.com/article/ALeqM5g-Led3mqRdlkLzBZ413DQphV3uWAD8UEAHM80