This morning when I arrived at work and did my regular peruse of different news agencies I frequent when bored at work, an startling article appeared. Now i don't really know anything about business. I wish I did (maybe i will have to learn now). Anyway, a French bank suffers from a rogue trader I suppose trading away 5bn euros of bank profits.
I didn't fully understand the article because 5bn euros seems like a lot of money, but the bank didn't seem to be too worried...at least not as it was reported. Well just now as I checked back to try and better understand the situation...one how does any one perhaps have the power to control 5bn euros, two why would someone do something like that, three what is the impact of such an act of fraud I read a headline "Bank uncovers $7bn fraud". I thought, oh the plot thickens. But no, the reporting agency (the same one I read the first article at) had just changed the original article so the amount was reported in American dollars instead of Euros. Press...that is not your job! It was Euros that were lost, report the lost Euros, don't try to inflate emotions by misleading readers. Grr it makes me upset. As a non-money type, a little help Media, would be nice. Perhaps explain what was this trader doing..."massive fraudulent directional positions in 2007 and 2008 beyond his limited authority"...what is a directional position...it sounds like a bet. but do banks bet...i guess, they must, even the weathermen bet to try and keep their inability to demonstrate and real predictive force of the weather afloat. How can you bet 5bn Euro...who would take that bet...im sure not the local bookers...
I'm worried about this, it seems like the cash system is more delicate than even i had imagined.But so what....what should we do.
Anyway, any of you businessy types, if you can suggest places to get laymans explanations on this story I would appreciate it.
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Hello again, Clovis!
It seems that we were both asking ourselves the same questions, while reading in amazement about the rogue trader who lost his bank five billion Euros.
If you want to read and know more about this, have a look at http://come-on-sense.livejournal.com/
There you find entries on the case, the man who did it, and - some days earlier - about the international banking and financial system, the stock markets and the US economy, which is mostly responsible for the current crisis.
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