Stupidity rules at SocGen …

Move over Nick Leeson … here comes Jérôme Kerviel

4.9bln Euro loss on Futures … obviously a lot of futures. Even if you assume a close to impossible loss of 1.000 points per contract, it must have been 200.000 FDAX or even 500.000 FESX futures … A lot for a “small position trader”.

So it was not only fraud, it was AT THE BANK reckless stupidity!!! A small bank would be immediately closed because the lack the adaequate risk system.

He big hit for whole France as a financial center. But read on!!!

EVEN WORSE …

last Friday, we had the SocGen rumor (stock sold off more than 8% in the afternoon) as a Herald Tribune article mentioned, that Mr Noyer from the french Central Bank would be “studying” the balance sheets of SocGen and BNP and he was quoted, that write offs are being worked out!!!

The names of the Banks DISSAPPEARED after some hours from the online article after he denied having said the names … AGAIN a SCANDAL and again STUPIDITY!!!
All these guys have big personality problems

This story out of France, after both banks said before, that they were not involved heavily, created the confidence crisis and started the SELLING WAVES!!! HOW STUPID!!!

Mr Noyer should take his hat!!! And all the stupid people at SocGen who made it happen!!!

I can only RECOMMEND, NOT to invest in SocGen … this bank failed BIG TIME!!!

The FED is said having known this event. IF, then it is again stupidity as it mislead the markets (AGAIN!!!) and the outcome would be NO RATE CUT next week … BE AWARE!!!

Tags: FED, France, Kerviel, Leeson, Noyer, rates, SocGen

This entry was posted on Donnerstag, Januar 24th, 2008 at 21:04 and is filed under FDAX. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.