Rogue trader to cost SocGen $7bn

Discussion in 'Wall St. News' started by bigbiscuit, Jan 24, 2008.

  1. eagle

    eagle

    Then they will claim that Daniel Bouton makes $7b, lots of bonuses to come. :D When the war is won then they claim the general won, while when the war is lost then they blame the soldiers lost the war.

     
    #81     Jan 28, 2008
  2. hmm? I wonder if that whole story is just a smoke screen to hide sub prime losses?
     
    #82     Jan 28, 2008
  3. Frenchy

    Frenchy

    I live near the financial police where kerviel is arrested !! you can't imagine how many journalist are in the street waiting for nothing ......
     
    #83     Jan 28, 2008
  4. In questioning so far, Marin said, Kerviel has been cooperative and has admitted exceeding his credit limit in order to make fraudulent transactions involving European index futures.

    "I exploded my credit line," Marin quoted Kerviel as saying.

    But Kerviel also defended himself, pointing out to police that in 2007, the bank felt he was doing such a good job that it offered him a 300,000 Euro ($440,000) bonus. The bank discovered Kerviel's fraud before paying the bonus.

    Kerviel told investigators that his actions were no different to those of other traders -- the only difference with him is that he was caught.

    Both Marin and Societe Generale (SCGL.Y) say they don't believe Kerviel profited from his alleged crime, but was merely playing with the markets and got in too deep.

    http://money.cnn.com/2008/01/28/news/international/socgen_charges/index.htm?postversion=2008012809

    more bs every day.
     
    #84     Jan 28, 2008
  5. Yeah right... "playing the market" with a $70bn bet on the house?
     
    #85     Jan 28, 2008
  6. commoditiestrdr

    commoditiestrdr Commodities View

    What I don't understand is how did a guy who had a salary of something like a 100,00 euro have access to all of that capital.
     
    #86     Jan 28, 2008
  7. It's Bush's fault!
     
    #87     Jan 28, 2008
  8. Agree, the management at the bank should also be fired for not unwinding the positions properly....
     
    #88     Jan 28, 2008
  9. Did you read the articles at all? You think they'd let every 100k junior handle $50bln worth of futures in a directional trade?

    The guy obviously found a workaround/hack to their security and risk analysis methodology making his trades 'invisible' to his supervisors... for a while.

    I love all the BS on the forums about this case. We know NOTHING yet every little odd lot trader has to reply how stupid SG is (duh!), how this is a conspiracy, how this is a coverup and how we shouldn't believe anything etc. etc. Just shut up and let them facts be released, stop reading tea leaves.
     
    #89     Jan 28, 2008
  10. I'm curious to learn what they could have done better.

    a) Average down?
    b) Call around trading desks for a quote on 100,000 DAX future and 100,000 ESTX fut. option puts (oh boy that would have been sth)?
    c) Issue a press release "We're long to our necks in European futures and close to becoming illiquid and force liquidation. Please don't trade against us. Thank you."
     
    #90     Jan 28, 2008