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The omen

 
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Old 20-09-2011, 05:22 PM   #1
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The omen

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
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Old 20-09-2011, 10:59 PM   #2
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That's a hell of a story!





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