SocGen says hit by 4.9 bln euro fraud

SocGen says hit by 4.9 bln euro fraud

uk.reuters.com

French bank Societe Generale said fraud by a single trader had caused it a 4.9 billion euro (3.7 billion pound) loss and that it would seek emergency funds as a result, shocking battered markets.

If fraud is proved, the loss will be the biggest caused by a rogue trader, ahead of the $2.6 billion (1.3 billion pound) hit to Sumitomo Corp caused by copper trader Yasuo Hamanaka and the $1.4 billion loss caused to Barings by Nick Leeson, both in the 1990s. It also eclipses a $6 billion loss racked up by hedge fund Amaranth trader Brian Hunter and his team ahead of its collapse in 2006.

(visit the link for the full news article)

Yes whilst the financial world falls down around our ears , unscrupulous people always find a way of skimming a bit off the top ..

Also a great excuse to announce the 2 billion loss in general (due to world markets) without it causing as much fuss as it would announced on its own..

I wonder how long the world will hang on before the big plunge .. can't see u guys in the U.S shoring it up for much longer, personally i think your trying to hold back the ocean with your fingers .. in the end its just not gonna work.

Ah well get your money out the banks whilst its still in their.

uk.reuters.com
(visit the link for the full news article)

[edit on 24/1/08 by Quantum_Squirrel]

"A source at SocGen said the trader was "not one of its stars "and was relatively young"

yeah i bet he wasn't!

But this raise the question to me : why let the young guys jungling with billions? I'd be curious to know what he's traded exactly.

Apparently this incident will not affect the benefits.( 600M €)

reply to post by themaster1


i also thought this statement was slightly dubious... how can a 'young' employee get access to squander this amount of money .. insanity, coupled with them not wanting to release his name i find unusual maybe they are hiding something else.

If this is about the French bank or guy its being discussed here www.abovetopsecret.com...

If not im sorry and this post should be ignored.

[edit on 24-1-2008 by Mindless]

reply to post by Mindless


As my post is 3 hours older than the one you have linked .. pls contribute to this thread. (unless posted in a different section the earlier post gets the nod)

Sorry i was just cross linking not trying to forward people there . Just point out that another thread has comments that may be relevant to the conversation at hand.