Sunday, January 27, 2008

Societe Generale reveals how it was duped in trading scam

Do you remember when lately SocGen anounced that junior trader frauded over $70 bilion? That is a lot of cash and this case has to be explained to public opinion and it seems that bank managers and trader which is partly as i belive responsible for such a big loss are trying to do it.

It maybe not article about Forex but, it is about trading, maybe even about great tragedy. We always learn from mistakes, and it is better to learn from someones else mistakes then yours so i advice you to read it.

Here is a short excerpt to encourage you to reading, by the way it is quite long.

"French bank Societe Generale has admitted that a gap in control systems allowed a junior trader to take a $73 billion losing bet on European share prices, but defended its handling of the world's biggest trading scandal.

Prosecutors said the trader, 31-year-old Jerome Kerviel, would remain in custody until Monday after handing himself in on Saturday and was co-operating with a probe into how the bank racked up $7 billion losses on alleged illicit deals.

Kerviel's new lawyer said he had been doing a trader's job by taking on risk and accused the bank of setting him up for a public "lynching" by letting him carry all the blame.

"He has not embezzled anyone, he hasn't taken a cent for himself and he was just doing his job as best he could," Christian Charriere-Bournazel told Reuters."

Read more here Checks by SocGen missed $73 billion wrong-way bet


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