Societe Generale got trading losses, not fraud?

They can be bailed out, or paid by insurance on fraud, but not for trading losses.

It is clear, that they were long 140,000 DAX futures, the market plunged, they panicked and sold at the bottom.
Then they shorted and got squezed.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=115867

 

Thats a pretty ruthless strategy, in fact its fraud. But having worked at a few Investment banks I would not put it past them. A few senior managers trying to cover their asses.

 

nm

 

Imagine phoning in that order......"Cancel replace, go to the market on the 140,000-lot!"