Rogue Trader Loses $7 Billion For France's Société Générale
I swear you can't make up stories like this. A low level French trader at France's Société Générale lost over 5 billion euros($7 billion US) betting long on the European stock indicies. The company's risk management team finally uncovered the fraud a few days ago, but the damage was done. To make matters worse, they had to unwind the positions this past Monday when the Asian & European markets were tanking big time. This probably added to the decline. I can't wait for all the gritty details to come out about this fiasco. It is eerily similiar to the rogue trader Nick Leeson who lost Barings Bank over $1 billion dollars back in 1995 betting long on Nikkei Futures on the SIMEX Exchange in Singapore.