losses of Euro 4.9bn on futures trading - bring back Nick Leeson all is forgiven!

a new one for all these case study collectors.

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QuoteOriginally posted by: KDana new one for all these case study collectors.the prm exam from prmia contains such case studies

I know .To all those out there pursuing the PRM, better hurry on exam IV, otherwise you'll have some additional material to study.

perhaps they will start examining PRM charterhodlers on their arithmetic skills.if this guy had to post 10% of notional as initial margin then its one heck of big number. say they lost 5bn on a 10% decline in stocks - so his notional exposure is about about 50bn - thats 5bn of initial margin. someone most have missed that ?

QuoteOriginally posted by: ppauperQuoteOriginally posted by: KDana new one for all these case study collectors.the prm exam from prmia contains such case studiesAs do all Risk Management courses, douchebag.

How can still happen on plain vanilla listed instrument? Is it credible?

QuoteOriginally posted by: TraderJoeQuoteOriginally posted by: ppauperQuoteOriginally posted by: KDana new one for all these case study collectors.the prm exam from prmia contains such case studiesAs do all Risk Management coursesall ?so you're saying that FRM now includes a collection of case studies ?

I don't underestand either ... isn't he suppose to put up margin?

QuoteOriginally posted by: ppauperQuoteOriginally posted by: TraderJoeQuoteOriginally posted by: ppauperQuoteOriginally posted by: KDana new one for all these case study collectors.the prm exam from prmia contains such case studiesAs do all Risk Management coursesall ?so you're saying that FRM now includes a collection of case studies ?I don't friggin' know. I don't waste my time on these pansy-ass risk management courses. I like to trade.

QuoteOriginally posted by: daveangelperhaps they will start examining PRM charterhodlers on their arithmetic skills.if this guy had to post 10% of notional as initial margin then its one heck of big number. say they lost 5bn on a 10% decline in stocks - so his notional exposure is about about 50bn - thats 5bn of initial margin. someone most have missed that ?Apparently they did.QuoteOriginally at http://www.forbes.com/feeds/ap/2008/01/ ... htmlFrench presidential aide Raymond Soubie said on LCI television that the trader had been dealing with more than 50 billion euros, or more than $73 billion. That figure easily outstrips the bank's market capitalization of 35.9 billion euros ($52.6 billion), and is close to the annual gross domestic product of entire nations such Slovakia, Qatar or Libya.SocGen's controls must have been total crap to let this guy hide both the trades and the ongoing margin requirements. This also speaks to the poor level of transparency/accounting at the market level. Why didn't the counterparties, exchange, or market regulator raise a red flag or independently contact the bank when Socgen's participation in futures grew into the high billions?

QuoteOriginally posted by: TraderJoeQuoteOriginally posted by: ppauperQuoteOriginally posted by: TraderJoeQuoteOriginally posted by: ppauperQuoteOriginally posted by: KDana new one for all these case study collectors.the prm exam from prmia contains such case studiesAs do all Risk Management coursesall ?so you're saying that FRM now includes a collection of case studies ?I don't friggin' know.then why your statement "As do all Risk Management courses" ?QuoteI don't waste my time on these pansy-ass risk management courseshmmm, didn't you say a while back that you'd registered for some of the prm exams ? how did that go ?

QuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: daveangelperhaps they will start examining PRM charterhodlers on their arithmetic skills.if this guy had to post 10% of notional as initial margin then its one heck of big number. say they lost 5bn on a 10% decline in stocks - so his notional exposure is about about 50bn - thats 5bn of initial margin. someone most have missed that ?Apparently they did.QuoteOriginally at http://www.forbes.com/feeds/ap/2008/01/ ... htmlFrench presidential aide Raymond Soubie said on LCI television that the trader had been dealing with more than 50 billion euros, or more than $73 billion. That figure easily outstrips the bank's market capitalization of 35.9 billion euros ($52.6 billion), and is close to the annual gross domestic product of entire nations such Slovakia, Qatar or Libya.SocGen's controls must have been total crap to let this guy hide both the trades and the ongoing margin requirements.indeed, VaR limits for one

Did anyone notice that Risk magazine awarded SocGen equity derivatives house of the year. Timing is impeccable:http://www.risk.co.uk/public/showPage.html?page=685494