Reading the stories coming out after the SocGen MISMANAGEMENT … not a rogue trader … absolute reckless mismanagement made it happen … makes me sick!!!
Where were/are all the supervising authorities???
SEC? BaFin? Whatever their name is … WHERE THE HELL ARE YOU??? Or are you all stupid underpaid bastards??? Helpless or blind? Or just waiting for job offers from banks?
Unfortunately, I saw how they worked and how clueless they are Even if one calls them up (I DID IT) … They don’t start working!!! Shame on them!
SocGen … Look at them! They obviously had NO rules at all at their trading desk. INCREDIBLE. A guy who earns 50k only expects a bonus of 600k as he earned LOADS of money for them in 2007. First hints, that something was wrong seem to come from 2005!!! This bank should be CLOSED down!!! STUPIDITY RULES!!!
And I’m sure, there are more banks with exactly this mentality!!! NO DOUBT!
Some of them are already known The only difference … it is a “hidden” case as whole departments went NUTS, including the CEOs!!!
Citibank, Merill Lynch, UBS, Morgan Stanley … multi-billion-no-brain-losses … WHY? 100% mismanagement and NO riskcontrol AT ALL!!!
GREED coupled with STUPIDITY and LACK of RISKCONTROL equals subprime crisis and huge write offs at trading units!!!
Look at the reports of these banks who struggle on their own strategy flaws … they sometimes “found out” that their VAR (value at risk) was more than 3 TIMES(!!!) higher than thought.
They blame the markets, but the blame is on them!!!
Flawed mathematical models drive them out of business or make them Arab/Asian entities … Well done …
Compare the actions of some CEOs and Jérôme Kerviel … and tell me … What is fair? Paying Mr Kerviel a huge bonus or start legal proceedings against the CEOs
I know one thing: Until there is no fundamental change within the financials and some of them go out of business finally … in other words … until there is no real SHAKE OUT in this sector, I won’t touch them on the long side.
Be aware of the BEAR Just mark them to Model … NO BRAIN x NO RISKCONTROL = SHORT ANY RALLYE ATTEMPT …