Wow, Societe Generale has been taken for nearly seven BILLION dollars by a rogue trader. Just as well we all learnt the compliance and risk management issues from the Barings collapse, and took all of Sarbanes Oxley, and other control legislation on board.
There will be gnashing of teeth and tearing of hair in Paris this morning.
Update, reading around on this, someone points out that a loss of 20% of the equity market value in Europe leading to a 7 billion dollar loss implies a 35 billion dollar or so base position in vanilla options. Can Soc Gen really claim that this is plausible that this was hidden? In addition, the Paris prosecution service seems to be saying that they have not been asked to bring any charges against anyone. This whole thing stinks of more than just one rogue trader on what I've heard so far.
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