Man, I just realize that it is Friday today! I was extremely busy with my work this week (and, ok, I am following Australian Open as well 🙂 ). All I have is just a couple of hours after London session open. So, no trade at all. I hope to get back to swing next week.
Here we go, another rogue trader who’ve thrown Société Générale into 4.9bn crisis.
SocGen said the exceptional fraud resulted from the purchase of huge long positions in plain vanilla futures hedging on European equity market indices that were beyond his limited authority.
The trader likely to trigger comparisons with the UKs Nick Leeson, who caused the collapse of Barings Bank in 1995 had deep knowledge of risk-control procedures from his time at the banks middle-office activities, which SocGen said had allowed him to conceal his positions.
Does it really help to have ‘deep knowledge’ of risk-control procedures ? uhm…