Merill Lynch trader

For those who trade with banks, How can they accumulate such loss and the loss go undetected? They are the so called experts aren't they??

Merrill Lynch looking at irregularity in trading | Reuters

its not gone un-detected, thats why they are investigating it

How can they accumulate such loss

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By accumulating massive market positions which are contrary to the market direction.

They are the so called experts aren't they??

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:cheesy::cheesy::clap::clap::clap:

normbeef said:

its not gone un-detected, thats why they are investigating it

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It has gone undetected... or should I say they have a flaw in their system that allows 1broker to accumulate such loss... One trader. It was not detected @250,000. In this economic climate you would have thought their risk should be reduced shouldn't it?

They have product controllers on hand verifying and controlling that the P/L and risk are with in the traders or desks remit. This is middle office and liases with both front and back office functions. Take Mr Leeson, he had some knowledge of the back and middle office and was able to conceal losses in a temporary holding account. The trader is not the one to blame. The bank's control system suffered systematic failure. Had the correct processes and procedures been followed then the trader would have been repremanded before incuring such losses. On the other hand someone may have turned a blind eye.

Either way they cocked up!