Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Oh, Those Roguish French

By

How could SocGen miss this one?

PrintPRINT
Rogue trading-the act of an authorized employee making unauthorized financial transactions-has always been a risky business. In 1995, Nick Leeson famously lost Barings Bank in England $1.4 billion, bankrupting the company and landing him six and half years in prison. Two years later, Yasuo Hamanaka made history by losing Sumitomo Corporation a record $2.6 billion.


But those numbers seem small compared to the work Jerome Kerviel. The now infamous French rogue trader lost Société Générale close to $7.2 billion, the largest sum in banking history. While Kerviel's awaits legal proceedings, SocGen has had to ward off hostile takeovers while finding ways to stabilize its shaken foundation.

Perhaps most puzzling of all, Kerviel wasn't a high-flying trader like Leeson. Rather, he worked on SocGen's European equities derivatives, a notably dull, midlevel job that earned him about $140,000 a year. The fictitious trades that cost his employer so dearly did not even earn him a single penny-er, franc.

But the bigger mystery is how SocGen officials could have missed the rogue trades for two years. New reports surface each day showing that the banking giant may have known more than it says. But Hoofy and Boo won't be satisfied until they get a first hand look le scandale…
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE