Trading The omen

Discussion in 'Share Investing Strategies, Theories & Education' started by Tropo, 20th Sep, 2011.

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  1. Tropo

    Tropo Well-Known Member

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    How an obscure Breton trader gamed oversight weaknesses in the banking system.

    "Mustier delivered the news to Bouton. The magnitude of the problem was almost unimaginable, and there was a serious risk that the bank could fail.
    Société Générale faced a loss of 1.5 billion euros and still had the unhedged fifty-billion-euro exposure in the futures market.

    The disclosure of this position might be enough to cause a run on the bank, triggering an international financial panic and stock-market crash.
    Meanwhile, there was a risk that Kerviel might tell other traders, who would be in a position to make a fortune by short-selling SocGen stock, and even stock indexes...."
    more ... Annals Of Finance: The Omen : The New Yorker
     
    Tropo, 20th Sep, 2011
    #1
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

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    That's a hell of a story! :eek:





    Johny.
     
    Johny_come_lately, 20th Sep, 2011
    #2