Hmmm... did the Fed waste some precious ammunition? [Archive]

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01WhiteCobra

01-24-2008, 02:51 PM

I was just reading how someone theorized the meltdown in the global markets on Monday (US markets closed) may have started with a large central bank (SocGen) unwinding their fraudlents trades (see other post on this forum.)

This caused a global market panic which would have been absorbed by the market in a day or so (few billion here, few billion there.)

Pavlov anyone?

Denny

01-24-2008, 02:55 PM

I think the timing of that rogue investor's antics, our extra day-off and the parading around of the "R" word was a little convenient.

01WhiteCobra

01-24-2008, 03:09 PM

I think the timing of that rogue investor's antics, our extra day-off and the parading around of the "R" word was a little convenient.

Just read on Bloomberg that the Fed said they had no clue about the rogue trader on Monday. lol

You would think the central banks of the world would talk to each other every now and then about something like this.

Denny

01-24-2008, 03:24 PM

Just read on Bloomberg that the Fed said they had no clue about the rogue trader on Monday. lol

You would think the central banks of the world would talk to each other every now and then about something like this.
Alerts are all too easy to make. Someone knew or knew someone who knew.

01WhiteCobra

01-24-2008, 03:29 PM

Alerts are all too easy to make. Someone knew or knew someone who knew.

And someone other than SocGen knew. It ain't like you don't need a counterparty to trade something. At some point, someone said, "Oh shit, SocGen is unloading", called a few friends, got them to short.

Those friends called two friends, who called two friends, and so on and so on and so on.

aggie97

01-24-2008, 03:37 PM

01WhiteCobra

01-24-2008, 03:44 PM

We had a trader where I used to work that was in SERIOUS trouble with the SEC and our guys who were usually VERY thorough in the hiring process never knew it till one day he just sat his phone down and walked out never to be heard from again...

I might google his name here in a minute to see what came of it but the guy just fell off the planet... Most of this shit will happen so fast nobody knows what's going on till weeks afterwards.

We're talking close to 10 billion dollars. SocGen isn't some diddly place... were talking serious size. I'm trying to find a pic I have of their trading floor. It's like a 4 football fields. Everyone one of those trades goes right through the screens of the risk managers. Someone, other than the trader, seriously fucked up here.

I'll be really interested in reading the recap of all this in a few weeks.

aggie97

01-24-2008, 03:50 PM

We're talking close to 10 billion dollars. SocGen isn't some diddly place... were talking serious size. I'm trying to find a pic I have of their trading floor. It's like a 4 football fields. Everyone one of those trades goes right through the screens of the risk managers. Someone, other than the trader, seriously fucked up here.

I'll be really interested in reading the recap of all this in a few weeks.

Oh I know, there is a senior trader going to jail too I bet!!!

I found my guy...sounds like he turned over to help the feds to get the rest of the bastards and Collins & Aikman...he was the treasurer...

01-24-2008, 04:03 PM

Al Qaida attacked the towers because they knew it'd shut down Wall Street and hurt our economy. I'm wondering if maybe this was their next big strike?

01WhiteCobra

01-24-2008, 04:20 PM

Al Qaida attacked the towers because they knew it'd shut down Wall Street and hurt our economy. I'm wondering if maybe this was their next big strike?

Interesting thought but I'm going with an immature trader that didn't learn his lesson on risk/reward and stop losses.

Jerome won the top spot but there are some really foolish people when they trade other people's money.

http://en.wikipedia.org/wiki/List_of_Trading_Losses