Massive fraud at French Bank
Discussion
http://news.google.co.uk/news?q=fraud+at+French+ba...
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The heading should really be:
SocGen sack bint for being way smarter than whole of back office, front office and compliance.
Of course, it is possible that with SocGen's slumping value over the last 6 months that other people knew about this and it was an internally structured bet with pre arranged exit strategy.
Only way of ever knowing would be to follow her when she goes on holiday to the Caymen and peep over her shoulder when she's at a cash machine.
Obviously, it is far more probable that everyone around her was ruthlessly incompetant.
SocGen sack bint for being way smarter than whole of back office, front office and compliance.
Of course, it is possible that with SocGen's slumping value over the last 6 months that other people knew about this and it was an internally structured bet with pre arranged exit strategy.
Only way of ever knowing would be to follow her when she goes on holiday to the Caymen and peep over her shoulder when she's at a cash machine.Obviously, it is far more probable that everyone around her was ruthlessly incompetant.
Must say I felt my eyebrows rising slightly when I heard SocGen squealing "Fraud!" very quickly and trying to pin all the blame on one "rogue trader".
Frankly the claim that having taken a huge vanilla exposure to equities, he then hid them, according to the chief exec of the bank, "using extremely sophisticated and varied techniques" is risible. If all you need to do to defraud SocGen is have a fair idea how their middle office works, then SocGen's controls are hopelessly inadequate and the people responsible for their crapness should be taken out and shot ... probably starting with the Chief Exec who seems so quick to try and make excuses. FFS, the bank ought to be full of people who know how the middle office works; that shouldn't be sufficient for them to hide transactions and risk.
Frankly the claim that having taken a huge vanilla exposure to equities, he then hid them, according to the chief exec of the bank, "using extremely sophisticated and varied techniques" is risible. If all you need to do to defraud SocGen is have a fair idea how their middle office works, then SocGen's controls are hopelessly inadequate and the people responsible for their crapness should be taken out and shot ... probably starting with the Chief Exec who seems so quick to try and make excuses. FFS, the bank ought to be full of people who know how the middle office works; that shouldn't be sufficient for them to hide transactions and risk.
ATG said:
Must say I felt my eyebrows rising slightly when I heard SocGen squealing "Fraud!" very quickly and trying to pin all the blame on one "rogue trader".
Frankly the claim that having taken a huge vanilla exposure to equities, he then hid them, according to the chief exec of the bank, "using extremely sophisticated and varied techniques" is risible. If all you need to do to defraud SocGen is have a fair idea how their middle office works, then SocGen's controls are hopelessly inadequate and the people responsible for their crapness should be taken out and shot ... probably starting with the Chief Exec who seems so quick to try and make excuses. FFS, the bank ought to be full of people who know how the middle office works; that shouldn't be sufficient for them to hide transactions and risk.
Whole story doesn't make any sense,Frankly the claim that having taken a huge vanilla exposure to equities, he then hid them, according to the chief exec of the bank, "using extremely sophisticated and varied techniques" is risible. If all you need to do to defraud SocGen is have a fair idea how their middle office works, then SocGen's controls are hopelessly inadequate and the people responsible for their crapness should be taken out and shot ... probably starting with the Chief Exec who seems so quick to try and make excuses. FFS, the bank ought to be full of people who know how the middle office works; that shouldn't be sufficient for them to hide transactions and risk.
Think about it if they were long index futures and got out first think monday morning - what could they have lost?
Lets say 10% at most, so that means they were €50bn long nominal
Just think of the size of both the initial and daily variation margin - does the bank regularly make billion euro payments without understanding why?
BTW if the major sell off on Monday morning was as a result of SocGen trying to get out of its position then I think the problems for the bank have only just started
Imagine if the FED start thinking that it was SocGen that forced their hand on interest rates
ATG said:
Must say I felt my eyebrows rising slightly when I heard SocGen squealing "Fraud!" very quickly and trying to pin all the blame on one "rogue trader".
Frankly the claim that having taken a huge vanilla exposure to equities, he then hid them, according to the chief exec of the bank, "using extremely sophisticated and varied techniques" is risible. If all you need to do to defraud SocGen is have a fair idea how their middle office works, then SocGen's controls are hopelessly inadequate and the people responsible for their crapness should be taken out and shot ... probably starting with the Chief Exec who seems so quick to try and make excuses. FFS, the bank ought to be full of people who know how the middle office works; that shouldn't be sufficient for them to hide transactions and risk.
Hold on!!! She's a woman, and they are French? Maybe she has fantastic knockers and kept getting them out everytime Risk came to talk to her?Frankly the claim that having taken a huge vanilla exposure to equities, he then hid them, according to the chief exec of the bank, "using extremely sophisticated and varied techniques" is risible. If all you need to do to defraud SocGen is have a fair idea how their middle office works, then SocGen's controls are hopelessly inadequate and the people responsible for their crapness should be taken out and shot ... probably starting with the Chief Exec who seems so quick to try and make excuses. FFS, the bank ought to be full of people who know how the middle office works; that shouldn't be sufficient for them to hide transactions and risk.
Horse_Apple said:
ATG said:
Must say I felt my eyebrows rising slightly when I heard SocGen squealing "Fraud!" very quickly and trying to pin all the blame on one "rogue trader".
Frankly the claim that having taken a huge vanilla exposure to equities, he then hid them, according to the chief exec of the bank, "using extremely sophisticated and varied techniques" is risible. If all you need to do to defraud SocGen is have a fair idea how their middle office works, then SocGen's controls are hopelessly inadequate and the people responsible for their crapness should be taken out and shot ... probably starting with the Chief Exec who seems so quick to try and make excuses. FFS, the bank ought to be full of people who know how the middle office works; that shouldn't be sufficient for them to hide transactions and risk.
Hold on!!! She's a woman, and they are French? Maybe she has fantastic knockers and kept getting them out everytime Risk came to talk to her?Frankly the claim that having taken a huge vanilla exposure to equities, he then hid them, according to the chief exec of the bank, "using extremely sophisticated and varied techniques" is risible. If all you need to do to defraud SocGen is have a fair idea how their middle office works, then SocGen's controls are hopelessly inadequate and the people responsible for their crapness should be taken out and shot ... probably starting with the Chief Exec who seems so quick to try and make excuses. FFS, the bank ought to be full of people who know how the middle office works; that shouldn't be sufficient for them to hide transactions and risk.
Horse_Apple said:
ATG said:
Must say I felt my eyebrows rising slightly when I heard SocGen squealing "Fraud!" very quickly and trying to pin all the blame on one "rogue trader".
Frankly the claim that having taken a huge vanilla exposure to equities, he then hid them, according to the chief exec of the bank, "using extremely sophisticated and varied techniques" is risible. If all you need to do to defraud SocGen is have a fair idea how their middle office works, then SocGen's controls are hopelessly inadequate and the people responsible for their crapness should be taken out and shot ... probably starting with the Chief Exec who seems so quick to try and make excuses. FFS, the bank ought to be full of people who know how the middle office works; that shouldn't be sufficient for them to hide transactions and risk.
Hold on!!! She's a woman, and they are French? Maybe she has fantastic knockers and kept getting them out everytime Risk came to talk to her?Frankly the claim that having taken a huge vanilla exposure to equities, he then hid them, according to the chief exec of the bank, "using extremely sophisticated and varied techniques" is risible. If all you need to do to defraud SocGen is have a fair idea how their middle office works, then SocGen's controls are hopelessly inadequate and the people responsible for their crapness should be taken out and shot ... probably starting with the Chief Exec who seems so quick to try and make excuses. FFS, the bank ought to be full of people who know how the middle office works; that shouldn't be sufficient for them to hide transactions and risk.
Horse_Apple said:
ATG said:
This is an important point. Are we sure she's a bird? Every news report I've heard has referred to a bloke.
It can be very difficult to tell with some Europeans. 
http://www.risk.co.uk/public/showPage.html?page=685494
brilliant. SocGen voted Equity Derivatives house of the year.
brilliant. SocGen voted Equity Derivatives house of the year.
NewNameNeeded said:
http://www.risk.co.uk/public/showPage.html?page=685494
brilliant. SocGen voted Equity Derivatives house of the year.
brilliant. SocGen voted Equity Derivatives house of the year.
"With one of the largest exotics books on the Street, one would imagine that Société Générale Corporate and Investment Banking (SG CIB) would be licking its wounds and coping with hundreds of millions of euros in losses. There was some impact, but the losses have been relatively minor and entirely manageable, says Christophe Mianne, SG CIB's head of market activities, covering equity, derivatives, fixed income, currency and commodities in Paris."
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