Société Générale has reveled that a rouge trader has managed to commit a “serious fraud” which has caused the bank to loose $7,300,000,000.  The losses have come from the purchase of positions in “vanilla” futures on European Stock market indices, (well beyond the limits this person had been given to operate within). 

How?

It would appear that the trader was well versed of the risk control procedures as they used to work in Soc Gen’s middle office.  This allowed the trader to disguise his positions.

$7.3 Billion is Nick Leeson ‘X’ how much!

We will watch this space as the financial markets once again come under the spot light.

FEAR & GREED