badboy
31-01-2008, 11:12 AM
ARIS—French bank Societe Generale said fraud by a single trader had caused it a 4.9 billion euro ($7.1 billion) loss and that it would seek emergency funds as a result, shocking battered markets.
If fraud is proved, the loss will be the biggest caused by a rogue trader, ahead of the $2.6 billion hit to Sumitomo Corp caused by copper trader Yasuo Hamanaka and the $1.4 billion loss caused to Barings by Nick Leeson, both in the 1990s. It also eclipses a $6 billion loss racked up by hedge fund Amaranth trader Brian Hunter and his team ahead of its collapse in 2006.
Read More... (http://en.epochtimes.com/news/8-1-24/64656.html)
Thanks to his expertise in control systems, he was able to stage a wide-ranging fraud without detection. From 2006 on, he had begun to take positions off Société Générale's books. He bet on positions that followed European indexes. He invested on both the upswing and the downturn of these futures, committing huge sums each time. To cover up this parallel activity, he offset his gains by fictitious losses and vice versa.
The operations cancelled each other out and consequently did not appear in the bank's accounts. "He shifted his fictitious cover at every audit, the schedules of which he knew, with extraordinary talent. He had to effect complete monitoring of his operations in real time. He had constructed a veritable hidden company by using Société Générale's tools," one manager noted. According to their internal inquiry, the man acted alone. For months, his strategy fooled the some 2,000 colleagues responsible for risk management at Société Générale.
Read More... (http://www.truthout.org/docs_2006/012408T.shtml)
Seraq daqs kemm anda dejn malta al 13 il darba! Ara veru jew tkun mentalment mhux fpostok jew inkella andu bajd kbir! lol
If fraud is proved, the loss will be the biggest caused by a rogue trader, ahead of the $2.6 billion hit to Sumitomo Corp caused by copper trader Yasuo Hamanaka and the $1.4 billion loss caused to Barings by Nick Leeson, both in the 1990s. It also eclipses a $6 billion loss racked up by hedge fund Amaranth trader Brian Hunter and his team ahead of its collapse in 2006.
Read More... (http://en.epochtimes.com/news/8-1-24/64656.html)
Thanks to his expertise in control systems, he was able to stage a wide-ranging fraud without detection. From 2006 on, he had begun to take positions off Société Générale's books. He bet on positions that followed European indexes. He invested on both the upswing and the downturn of these futures, committing huge sums each time. To cover up this parallel activity, he offset his gains by fictitious losses and vice versa.
The operations cancelled each other out and consequently did not appear in the bank's accounts. "He shifted his fictitious cover at every audit, the schedules of which he knew, with extraordinary talent. He had to effect complete monitoring of his operations in real time. He had constructed a veritable hidden company by using Société Générale's tools," one manager noted. According to their internal inquiry, the man acted alone. For months, his strategy fooled the some 2,000 colleagues responsible for risk management at Société Générale.
Read More... (http://www.truthout.org/docs_2006/012408T.shtml)
Seraq daqs kemm anda dejn malta al 13 il darba! Ara veru jew tkun mentalment mhux fpostok jew inkella andu bajd kbir! lol