Comments on: SocGen Rock – The BackOffice Dirty Sex http://bankimplode.com/blog/2008/10/13/socgen-rock-the-backoffice-dirty-sex/ Wed, 23 Sep 2009 21:43:37 -0400 http://wordpress.org/?v=2.8.1 hourly 1 By: Bank-Implode! » Blog Archive » Societe Generale - $30.1B http://bankimplode.com/blog/2008/10/13/socgen-rock-the-backoffice-dirty-sex/comment-page-1/#comment-1478 Bank-Implode! » Blog Archive » Societe Generale - $30.1B Thu, 09 Apr 2009 23:28:47 +0000 http://bankimplode.com/blog/?p=66#comment-1478 [...] suffered a $6.5B (€4.9B) loss due to what the bank terms fraud, refering to the activies of Jerome Kerviel, a 31 year old junior trader at the bank. It is unlikely that a 31 year old junior trader cold rack [...] [...] suffered a $6.5B (€4.9B) loss due to what the bank terms fraud, refering to the activies of Jerome Kerviel, a 31 year old junior trader at the bank. It is unlikely that a 31 year old junior trader cold rack [...]

]]> By: shtove http://bankimplode.com/blog/2008/10/13/socgen-rock-the-backoffice-dirty-sex/comment-page-1/#comment-188 shtove Thu, 06 Mar 2008 10:27:20 +0000 http://bankimplode.com/blog/?p=66#comment-188 I think the implode-o-meter has missed this one on its top-page list of losses: "In France, Credit Agricole reported a €3.3bn write-down on US subprime debt and losses stemming from bond insurers. Fourth quarter losses reached €857m. Chief executive Clemence Bounaix, said there would be no further losses. "It's disappointing but the risks and exposures are now known and the market feels it can turn the page," he said." http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/05/bcnitaly105.xml I think the implode-o-meter has missed this one on its top-page list of losses:

“In France, Credit Agricole reported a €3.3bn write-down on US subprime debt and losses stemming from bond insurers. Fourth quarter losses reached €857m. Chief executive Clemence Bounaix, said there would be no further losses. “It’s disappointing but the risks and exposures are now known and the market feels it can turn the page,” he said.”

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/05/bcnitaly105.xml

]]> By: Richard http://bankimplode.com/blog/2008/10/13/socgen-rock-the-backoffice-dirty-sex/comment-page-1/#comment-147 Richard Sun, 17 Feb 2008 00:08:53 +0000 http://bankimplode.com/blog/?p=66#comment-147 It seems impossible to me that the losses of the Rouge Trader weren't seen by Soc Gen's management. Soc Gen would have been getting margin calls to cover the losses and positions - that's actual Euro that would have been lodged with Eurex. You can lie about your trades but you can't lie about the cash that's covering them. This thing about invented counterparties is merde. It seems impossible to me that the losses of the Rouge Trader weren’t seen by Soc Gen’s management. Soc Gen would have been getting margin calls to cover the losses and positions – that’s actual Euro that would have been lodged with Eurex.

You can lie about your trades but you can’t lie about the cash that’s covering them. This thing about invented counterparties is merde.

]]> By: Dion Per Sona http://bankimplode.com/blog/2008/10/13/socgen-rock-the-backoffice-dirty-sex/comment-page-1/#comment-70 Dion Per Sona Thu, 07 Feb 2008 06:45:21 +0000 http://bankimplode.com/blog/?p=66#comment-70 The trick to the story is this: Monsieur Kerviel bet against SocGen's offerings - and was wildly upside by €0.5bln mid 2007 (which is when Bear Stearns strted dumping junk on Wall Street and Lehman dumped junk on US School districts, nationwide). Traders and colleagues, as well as management and rivals, were becoming acutely aware of the illiquid quality on which the global market has now choked. His gains became embarassing, and mounted to €1.4bon...so embarassing that he dare not reveal them to lofty, highly-paid techspeaking SocGen derivatives moguls and began to try and lose all that smart money. If at all possible. He didn't have to worry: SocGen did it for him, with knobs on, managing to quadruple his losses and almost to crash the market. That was in fact the game. SocGen, we now recall with dismay, was the only bank in the world to guarantee the Romanov's ponzi scheme, The Russian Railway Bonds, at the tail end of the 19th Century. The trick to the story is this: Monsieur Kerviel bet against SocGen’s offerings – and was wildly upside by €0.5bln mid 2007 (which is when Bear Stearns strted dumping junk on Wall Street and Lehman dumped junk on US School districts, nationwide). Traders and colleagues, as well as management and rivals, were becoming acutely aware of the illiquid quality on which the global market has now choked. His gains became embarassing, and mounted to €1.4bon…so embarassing that he dare not reveal them to lofty, highly-paid techspeaking SocGen derivatives moguls and began to try and lose all that smart money. If at all possible. He didn’t have to worry: SocGen did it for him, with knobs on, managing to quadruple his losses and almost to crash the market.

That was in fact the game. SocGen, we now recall with dismay, was the only bank in the world to guarantee the Romanov’s ponzi scheme, The Russian Railway Bonds, at the tail end of the 19th Century.

]]> By: Susan Kishner http://bankimplode.com/blog/2008/10/13/socgen-rock-the-backoffice-dirty-sex/comment-page-1/#comment-19 Susan Kishner Sun, 03 Feb 2008 22:40:25 +0000 http://bankimplode.com/blog/?p=66#comment-19 I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you. Susan Kishner I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

Susan Kishner

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