Jailed trader ordered to pay $7bn

[oildaytrader]

The fine doesn't look that bad.
All he has to do is read t2w and he'll make 100% per hour, compounding to a few billion before tea time.

Just hit on the nail , no losses and medb still making money and posting on t2w.And the rest of the Divas on t2w making 500 % per annum with no losses.

 

[Shakone]

If he's forging all the documents, how is the bank supposed to know the exposure etc? I'm pretty sure he was breaking all the rules they had in place, so saying they should of had better risk management is rubbish unless you think they need to double check everything, and then hell, two guys could be in on it, better get a third, and a forth, probably a fifth.

1) Yes these things should be double/triple checked if there is a risk of 7 billion. Anything that can take the entire company down should be watched carefully.

2) They should have a better system in place than something which can be overcome by forged documents. Even a spreadbet company will exit your positions if your account is negative. I'm staggered that a billionaire company with some of the smartest minds in France has a system that can be so easily traversed.

3) Yes if there were 2,3,4,5 people involved, risk manager, his boss etc. that would be a bit different. But it doesn't seem so.

 

[meanreversion]

Sacre bleu, sur le pont d'Avignon

 

[FX Bandit]

What's the big deal? These billions he lost, it was euros right? So just get the Germans to pay for it, they'll end up bailing out most of the losers in Europe anyway. Just chuck this one on the heap, they'll hardly notice.

 

[Prawnsandwich]

Ah come on ...it cant be that he was acting on his own, circumventing all of the banks safeguards...

How could they miss the huge amounts he was playing with, what about risk / credit control... doesn't make sense.

Having said that, I don't know much of the details, but sounds a bit too much Le scapegoat to me....

 

[Prawnsandwich]

What's the big deal? These billions he lost, it was euros right? So just get the Germans to pay for it, they'll end up bailing out most of the losers in Europe anyway. Just chuck this one on the heap, they'll hardly notice.

Ze Germans are getting a bit uppity about having to pay for all the sh1t...so "hardly notice" is probably not completely accurate...and we all know what uppity Germans are like...

 

[FX Bandit]

Ze Germans are getting a bit uppity about having to pay for all the sh1t...so "hardly notice" is probably not completely accurate...and we all know what uppity Germans are like...

Oh come now, that's hardly fair. I doubt anyone could name even two occasions in, say, the last hundred years when the Germans have got out of line.

 

[Prawnsandwich]

Oh come now, that's hardly fair. I doubt anyone could name even two occasions in, say, the last hundred years when the Germans have got out of line.

Yeah suppose ye got me there I take it all back..

 

[Dommo]

I'm no fan of government in any general shape or form, but 5 years for such a high profile loss doesn't strike me as much of a deterrent.

 

[Ambrose Ackroyd]

Oh come now, that's hardly fair. I doubt anyone could name even two occasions in, say, the last hundred years when the Germans have got out of line.

If I didn't know any better I would say that you are extracting the urine here Bandit.

 

[FX Bandit]

Who, me? :-0

 

[Hoggums]

I'm sure if it was ODT who had to pay this fine he could sift down the back of the sofa and find a few $bn lying around there.

 

[Prawnsandwich]

If I didn't know any better I would say that you are extracting the urine here Bandit.

Yep ole Bandit is a right little prankster........but he was kinda saying the same thing I was implying in my op....so I'm not sure if extraction of urine is applicable in this instance....

 

[Ambrose Ackroyd]

A rogue trader who almost brought down French bank Societe Generale has been jailed and ordered to pay back 4.9bn euros (£4.25bn).

Jerome Kerviel was found guilty of breach of trust, forgery and entering false computer data in the massive fraud scandal.

The 33-year-old showed no emotion as a Paris court sentenced him to five years in jail, with two years suspended.
His lawyer said he would appeal the decision.

I feel for the guy.

 

[valutist808]

Hi eveybody,

By sending this person in the jail .. the cause of the problem hasn't been solved ... much less with the fine ... the problem is with banks systems and moreover the supervising activity of those who are using these systems...

P.S. others similar cases perhaps to appear

 

[Mr. Charts]

I wonder if the 1.4 billion euros he made for SG the previous year will be deducted from his "fine"?
He can't pay it and French law prohibits people having to pay more than a small %age of their income in fines anyway.
He will be out on appeal or have his sentence reduced.
Richard

 

[FX Bandit]

I'm sure if it was ODT who had to pay this fine he could sift down the back of the sofa and find a few $bn lying around there.

I'm not so sure. Didn't he have to spend about a billion developing his automated system? Maybe he's a bit short after that.

 

[Emini-mouse]

the fine is to stop him gaining by selling the film and book rights

 

[valutist808]

emini-mouse,

i really belive your idea ... yes maybe they don't want to have another nick leeson case

good luck

 

[Mr. Charts]

SocGen have said they don't want the fine.