Posted on 01/24/2008 8:08:08 AM PST by Perdogg
French banking giant Societe Generale is seeking emergency funds after uncovering a "massive" fraud by one of its Paris based traders which has cost the company $7.1 billion (€4.9 billion).
The news has shaken the already nervous world banking industry, which is currently in the midst of a credit crunch as high-risk mortgage borrowers default on their loans.
(Excerpt) Read more at homesworldwide.co.uk ...
Just blame Bush, and I will produce endorphins.
Since they know the guy stole 4.9 billion, he put it somewhere. Just get it back.
Wow...one dooshbah caused the foreign markets to crash, maybe they need to implement SOX404 testing...
He didn't steal that amount. He lost it in the markets.
While I wouldn't be surprised if he was able to steal some money, it is much harder to take cash out of a bank than to lose futures contracts inside a bank.
When Nick Leeson lost barings 1.4 billion, he was only able to steal 35 million - and they found that almost immediately.
Translation: He had a basic understanding of how this stuff works, which we big-wig executives lack. We never bother learning about it because it's beneath us.
Sarbanes-Oxley Act for those wondering what your comment was refering to.
Translation: we told him to make those trades, then cover them up while doubling down...but the Market never went our way and now we’ve shuttered SG.
Throw out your hands; stick out your tush
Hands on your hips; give ‘em a push
Don’t be surprised, you’re doin’ The French Mistake
from Mel Brooks’ “Blazing Saddles”
SG found out on Friday. Euro futures were down over the weekend (read: illegal insider trading from leaks of this news).
Global markets were down on Monday and Tuesday as SG unwound those futures positions.
This was a correction due to a rogue trader in Europe, not from a sub-prime or bond insurer crisis in the U.S.
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