Saturday 24 May 2008

SocGen Shock: JK “May Have Had Accomplice”


So – little Jérôme Kerviel may not have been acting alone: and a couple of token middle-management heads are to roll at SocGen. We’re shocked !

Well no, actually, we’re not.

If you fancy a really scandalous weekend read, have a look at this exposé of dirty dealing in the City. The FSA isn’t just blind to the Northern Rocks of this world.

ND

8 comments:

  1. you think there's much truth in the Guardian story Nick or it's a tad exaggerated.

    In my experience all jobs are dodgy one way or another. My first ever job was pulling pints in a plush hotel - the manager once had be tip all the undrunk sherry back in the bottle after a wedding reception.

    Every sales job I've done (including financial services such as PPI) involved dodging people and every public sector job dodging the taxpayer.

    It's thre way of the world, if anyone trusts bankers then more fool them!

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  2. I'm probably just naive

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  3. I think a low level of insider information dealing is impossible to stop. What they do about HBOS irregular trading will be interesting...

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  4. The thing that gets me about HBOS is that the rumours turned out to be true. They did have funding problems, they madea rights issue, and now that the market has had a chance to digest this their share price is nigh-on the same as after the 'rumours'.

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  5. This reminds me of poor old Joseph Jett, who was egged on by his superiors who collected vast bonuses (boni?) on the back of exploiting a flaw in the way that GE booked profits on bond trading. They dropped the poor bugger in it an walked away laughing.

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  6. Anonymous3:21 pm

    The questions you have to ask are:-

    "why did SocGen allow a single trader access to 50billion Euro in funds?"

    "why were SocGen so keen to unwind those positions in a day, causing markets to drop and costing them 5billion Euro?"

    "why was it coincident with a credit crunch situation where banks were facing problems finding liquidity?"

    As far as I am concerned Kerviel probably had is hands in the till for a small amount, but was used as cover for SocGen suddenly finding a way to get its hands on huge amounts of liquidity with no one looking in detail at what they were playing at. This kind of high level dodgy dealing is always going on in France.

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