Friday, January 25, 2008

Amazing pair of news for Societe Generale

This and this news come out.

English sense of humour perhaps.



  1. Amazing how ONE MAN can do so much damage. So much trading is automated and so much reliance is put on computers I'm not surprised it happened. I'm not saying computers per se are to blame here, but the people who designed the checks and balances just haven't put enough of them in the system to prevent these things to happen.

    Apropos of this... it reminds me of something I read just a few weeks ago, about the derivatives blow-up that happened last summer. Because computer trading systems are so much automated and so tightly coupled, something negative (in this case, the sub-prime woes) can ripple through the system extremely quickly.

  2. Well...

    Supposedly in 1987 that same thing happened and from then on, it was cured.

    Anyhow, 5b Euros man...

    How does one even miss that.

    I know...

    It is because money was lent to clients so recklessly, and of course money was paid back before...

    So when a few accounts starts to grow very quickly, no one notices.