French bank finds $7B fraud by trader

[friendz4evr]

Biggest trading losses ever (I think).

http://www.usatoday.com/money/world/2008-01-24-france-bank_N.htm

PARIS — A "massive fraud" by a junior rogue trader has punched a $7 billion hole in the finances of French bank Societe Generale, leaving its credibility in tatters and forcing it to get emergency cash.
France's central bank and government scrambled to shore up confidence in the banking system after Societe Generale, France's second-biggest bank, said Thursday it had been the victim of massive and "exceptional" fraud resulting in losses of 4.9 billion euros.

Executives said the trader, a Frenchman in his 30s, probably acted alone. CEO Daniel Bouton said his motivations were "irrational," netting the trader no personal financial gains.

The bombshell announcement destabilized a major bank already exposed to the subprime crisis. France's second largest bank by market value said it would be forced to seek $8.02 billion in new capital...

 

[a 1 player]

Some people just don't know when to quit. For 7B, he could build a colony on the moon and no one could get him.

 

[fuji]

He's even dumber than that. Reports are that despite being described by his former employer as a "genius at fraud" they are saying he didn't personally profit from it. You would think a true genius of fraud would be able to get a few of those billions of dollars into his own account

I suspect the guy is not even the fraudster they claim he is, rather, maybe the bank just fucked up hugely, and they are scapegoating.

Or perhaps he really is a genius and he has the 7b stashed somewhere, just nobody knows where.

 

[raydeon]

Some people just don't know when to quit. For 7B, he could build a colony on the moon and no one could get him.

If you read the post carefully, he never profited from the fraud.

 

[Dewalt]

It is the French. They over react to EVERYTHING. Probably not even 7B, they are just using the media to hype it up for insurance claims.