Societe Generale Unveils $7.2bn Lone Trader Loss

Hello everyone,

French's second largest bank by market value has today uncovered a massive $7.2bn loss accumulated by a lone traders actions. The trader who has agreed to this is yet to be mentioned as at  release. The trader had basically opened trades beyond his limit got in trouble. This fraud was uncovered last week. As at release Societe Generale has it's shares suspended, with the bank Chief executive offering to step down but the Bank's Board has refused the move from It's Chief Executive, although supervisors were suspended on this move.

Warning to all em folks out there who claim to know the financial markets so well, just take a que from a pro. What basically happened is that he traded above set limits and when he found that he made losses, he entered multiple positions to cover for the losses, and he encured more losses.

Get full story at http://piptrain/2008/01/societe-generale-unveils-72bn-lone.html

Is very pathetic how a single trader can get his bank into such debts, the sentiments in europe right now is that other banks are looking at the possibility of these kind of happenings and are doing some inward checks right now.

Outlook in the world's financial senerio is very bad and is either recession or a slow down,  but until then we got to keep our hands crossed and watch the unfolding events in europe, asia, and the mighty yankees.

Cheers all.