Monday 28 January 2008

How To Lose £3.7 Billion

More details are emerging on how one “rogue trader” managed to lose the French bank Societe General £3.7 billion. What he was doing was buying up futures in the stock market (effectively betting on which direction the market would go).

These purchases were supposed to be complemented by sales, what he did was to invent fictitious sales which allowed him to carry on undetected.

Now some commentators are suggesting the the massive falls on stock markets at the start of last week were triggered by the bank’s off loading it’s bad bets If true then proof that one man can change change the world.

In a disturbing counterpoint it was announced today that McDonalds will be able to issue educational diplomas to people who pass their basic shifts manager course. I could be wrong but I do not see what that qualifies someone to do other than run shifts in McDonalds - not very life changing.

And Vancouver turns out to be the best city in the world to live in according to a survey by EIU, this news does not surprise me as everyone I know who has visited there has raved about the place. Nor is there much surprise in the world’s worst Port Moresby in Papua New Guinea - an old school friend of mine lived there for a dozen years and he always described it as “like living in the Wild West”.

4 comments:

Sezme said...

It will be interesting to see just how much influence on the market that the trader had. Heck, silly rumors send the market crazy. This guy really tweaked with major stuff. (That is technical financial language, btw.)

McDonald's ought to send its people to real schools for real diplomas and degrees; otherwise, those people are just tied to the company store if you catch my drift.

Vancouver: My uncle used to be a high muckity muck attorney in Vancouver. He lived in North Vancouver and had a home that had a back yard that led to the water. My dad always loved going there. The pictures I've seen have been absolutely gorgeous and unfortunately, my unlce took ill and wasn't taking visitors when I finally became old enough to go visit him. I always wanted to visit.

Sadly, the high crime, prositution, and drug rate and encroaching on a lovely part of Canada.

DBA Dude said...

rt, read about a study where an investment analyst, financial astrologer (WTF?) and a 4 year old girl (she threw 100 bits of paper with stock names on them and picked them at random) selected stocks. No prize for guessing whose picks turned out to be the best.

Shame that you never made it to Vancouver - it is pretty high on my list of places to visit - always fancied the idea of getting a train in Toronto and heading West to the end of the line.

Sezme said...

I've always wanted to do that same trip (train or drive) and then take a car down the western coast of the U.S.

DBA Dude said...

rt, I have done the drive from San Francisco North into Southern Oregon and the scenery was just breathtaking.

Even the natives were friendly every place we stopped - guess being three Scottish persons might have helped.