What happened at 3:45est???

You'd think Bear Strern would have a program to prevent that error from even being entered rather than some after the fact risk management program.

That was almost Leeson-esque in its proportions. A little bit of AI, some prospective order management might help. But nooo. I'm sure they're cutting IT development.

They put the bear back into Bear Stern.

 

This is some funny shit! Can you imagine the clown who set this program in motion. Hope they had their depends on.

I remember last year in the spring or summer when some chowder head in europe set a sell program in motion that tanked the FTSE. It was pretty big news at the time. The thing I can't believe about these errors is that there isn't some kind of safety valve that prevents this shit. I mean, maybe they should be using a windows based program that has a little dialogue box that pops up to confirm the trade that flashes the size in big red numbers. Perhaps a little trade wizard that says " Are you sure you would like to make this trade?" LOL

Glad I'm not the only idiot that makes keystroke errors

MACD

 

Damn holmes your faster on the keys then me. Are you the SOB that keeps taking all my trades?

MACD

 

lmao

 

Na holmes, that was my P/L today.

MACD

 

They cancelled all but 600+ million when they wanted to only sell 4 million. So they sold 100x what they wanted yet they say they were sufficiently hedged?

Jesus, how fragile is this house of cards, anyway? What if they hadn't caught it until 3+ billion had sold off? Then other people would have followed suit and we'd definately be staring at the DOW 5,000.

I bet that bond guy who predicted DOW 5000 was the one who clicked the mouse button.

With an even smirk on his face, he said, "Eat shit and die you equity lovers! muhahaha!"

 

That's hillarious, I could picture Bill Gross sitting there laughing his ass off ass the market tanked.

MACD

 

Do they have to buy back to cover?
AMD warned after hours. Tomorrow will be interesting.

 

NYSE: "As a result of a clerical error at approximately 3:40 p.m. today, Bear Stearns entered orders to sell $4 billion worth of S&P securities. The orders should have been entered as $4 million. All but $622 million of the orders were cancelled prior to execution. The firm has advised the NYSE that the risk from the executed orders has been substantially hedged."


Thats a Fastttttttt Hedge ehh

 

Ok 4 billion shares, 500 stocks in the S&P. So on average, each stock in the S&P got hit with 8 million shares to sell?