| Biggest trading scandal in the world? | |
|---|---|
| Jan 28, 2008 01:17 |   |
 | Jérome Kerviel has become famous in the world now. He made a 50-billion-euro ($73.3 billion) market bet and let Societe Generale suffer a great loss of 7 billion dollars. The bank admitted that its risk systems had failed to detect the market bet by Kerviel. How can a trader be able to conceal positions that were higher than the gross domestic product of Morocco? It is said that the drastic drop in European share markets have had something to do with this. |
| Jan 28, 2008 09:15 | #1 |
| The story line that the general public is receiving on this sort of smells. I'm sure there is a lot more information that we are not receiving and probably never will. It's ironic that these financial institutions always want to be self governed rather than by the government(state), so if something goes amiss they have nobody to blame but themselves(let them self destruct if they want) |
| Jan 28, 2008 20:59 | #2 |
| Quote:"It's ironic that these financial institutions always want to be self governed rather than by the government(state), so if something goes amiss they have nobody to blame but themselves(let them self destruct if they want)" GARYKINKADE, this is called market economy. The government shouldn't intervene in their operation. Some people blame that China should open its financial sector widely to those foreign institutions and let their banks and other financial institution compete with their counterparts. What do you think? Should China do as those foreign nations, letting them operate by themselves? |
| Jan 28, 2008 22:15 | #3 |
| 1. The "free market" economy is great when there is a "free press" to expose the corruption in the system. 2. The "free market" economy will work if there is a strong government that is entirely independent of corporate control. 3. The "free market" economy works when political candidates are not influenced through donations by corporation(all institutions). The "free market" economy looks good on paper and reads well as long as everyone agrees and abides to fair competition. Unfortunately in a "free market" economy there are always people or corporations that do not like to play by the rules and eventually ruin the system for all concerned. Believe me, I'm not an economist but am just telling it as I see it. Will the " free market" work in China? Yea ,for about 50yrs. maybe. |
| Jan 28, 2008 22:24 | #4 |
| Gary, sounds reasonable. when i read the first half part, I can imagine you are uttering slogans on a parade. hehehe |
| Jan 28, 2008 23:18 | #5 |
| In a parade as in being a "demonstrator"? No "mam" I don't do things like that. Getting too old and besides they(?) like to take pictures of demonstrators. Just sitting back and watching it on tv is fine with me. But if there is an issue that is really bugging me then my mind may change. |
| Jan 29, 2008 09:20 | #6 |
| Gary, you are a penetrating observer who is hard to be screwed up. Amen! |
| Jan 29, 2008 11:32 | #7 |
| No....Actually I'm a little on the dumb side(or maybe naive) and if I continue to "spout" off about our "Free market system" then some men in "black suits" may want to "pay me a visit" and you may never hear from me again(even though this is suppose to be a "free speech" society). However, thanks for the compliment. |
| Jan 29, 2008 13:54 | #8 |
| There's a better system other than a perfect system. You can see those kinds of parades and differenct voices on media, which mean you are enjoying free press, media, speech. Free mkt based on regularory foundations together with effective execution and strick supervision. System controls much better than individual control. i think western society has been benefiting from this legacy. To some extent, Western gov do much better in terms of for the people, by the people and of the people. So don't complain. Exploitation and Oppression more exist in less developed countries. |
| Jan 29, 2008 19:07 | #9 |
| O.K. on that. What's the latest between Jerome Kerviel and Societe Generale? |
| Jan 29, 2008 20:16 | #10 |
| Jerome Kerviel's lawyer defends for him that his client didn't get any profit from this event was the scapegoat. Societe Generale announces that they will call in independent auditors to examine this event. It is too comlicated. |
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