French trader-broker loses his brokerage 8 billion and they didn't know about it.

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  • BrentCrude
    SBR MVP
    • 11-16-05
    • 4665

    #1
    French trader-broker loses his brokerage 8 billion and they didn't know about it.
    I suppose I could and should have Googled it where I could have attached the story but I thought some people heard about it already yesterday.

    A French trader lost his firm around 8 billion dollars by going out on a limb recently on shorting and what they call puts and call contracts which is essentially double or nothing gambling.I would equate his logic to steaming in poker where you lose money in a bad beat and then just go nuts trying to recover it in the following hands by raising on mediocre hands and finally having to go all in on a mediocre hand.

    I love the few movies that were put out that go into great detail on these kinds of true stories about stuff like this and the panic that races through these guys heads and how they try to come up with escape plans,ways to cover things up.etc.

    Anyone ever see the true story movie about the Toronto banker that kept embezzling money to gamble at casinos with?

    Then there was the English trader-broker that lost billions doing unauthorized trades and covering up the losses for his brokerage house in Singapore that took off on the lamb.

    One of the funniest cases though was what is known as a fat finger trade where some over excited broker trying to execute a trade in quick fashion trying to get in on a favorable price,entered the decimal point in the wrong place on the bid or ask and lost the company billions.

    Where I live,not a day goes by where you don't hear of women in high positions of banking,accounting and branches of government embezzling money to support their slot machine habit.It's an absolute epedemic that the government does NOT want to reveal because it would fly in the government's face the decision to set up legalized gambling to collect revenue.It's o.k for the government to play responsible parent by regulating everyone's behavior but when it comes to the government regulating their bad behavior by needing extra tax revenue from gambling because they waste all the tax dollars,they cover up the downside to gambling like the embezzlement epedemic.
  • buztah
    SBR Hall of Famer
    • 03-23-07
    • 7470

    #2
    I've seen both movies. They are AWESOME! I think they are Owning Mahoney and Renegade Trader/Rogue Trader (???). Good stuff.
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    • Tchocky
      SBR MVP
      • 02-14-06
      • 2371

      #3
      Where were the checks and balances? Sacre bleu!
      Comment
      • Red_Sux
        SBR MVP
        • 06-25-07
        • 1262

        #4
        making money aint easy.
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        • RageWizard
          SBR MVP
          • 09-01-06
          • 3008

          #5
          I can't believe they would give one guy access to that much money, even if he is gods gift to market timing.
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          • pico
            BARRELED IN @ SBR!
            • 04-05-07
            • 27321

            #6
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            • pico
              BARRELED IN @ SBR!
              • 04-05-07
              • 27321

              #7
              Originally posted by buztah
              I've seen both movies. They are AWESOME! I think they are Owning Mahoney and Renegade Trader/Rogue Trader (???). Good stuff.
              Comment
              • MoneySportsGuy
                SBR MVP
                • 12-09-07
                • 4891

                #8
                Wow that is nuts
                Comment
                • pico
                  BARRELED IN @ SBR!
                  • 04-05-07
                  • 27321

                  #9
                  He stopped short, however, of saying that Kerviel's actions affected the U.S. Federal Reserve chairman's subsequent decision to cut rates.
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                  • pico
                    BARRELED IN @ SBR!
                    • 04-05-07
                    • 27321

                    #10
                    Explore the News Articles featuring Technology, Business, Entertainment, and Science & Health topics. Access reports, insights, and stories.


                    fat finger trade. damn i would not give back the money either.
                    Comment
                    • pico
                      BARRELED IN @ SBR!
                      • 04-05-07
                      • 27321

                      #11
                      not sure about how accurate is the movie, but nick liessen character in the movie is great. this is way better than owning mahony. nick broken the bank...the bank that financed the lousiana purchase. mahony is just a gambler, nick change the world. not that many people can do what nick did. if i have taken out a british bank, i would feel very proud of myself.
                      Comment
                      • brock
                        SBR Hall of Famer
                        • 01-07-08
                        • 8385

                        #12
                        Originally posted by Red_Sux
                        making money aint easy.
                        Comment
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