September 16, 2011
Bankster Nailed, But For What?

Hereís the latest rogue trader story, this one apparently resulting in a $2 billion loss for a Swiss bank. Iíve read several different accounts now, and am just as confused as I was by all the earlier rogue trader stories.

Did this kid walk away with $2 billion and stash it in some other Swiss bank? Seems impossible. Was he making bets on his bankís behalf that went south instead of north? If so, why was he arrested? Because he exceeded his authority by not telling his bosses he was making those bets, or concealed that they had gone south? Are these crimes? Cause for firing, sure. But criminal offenses? Help me out here. Whatís going on?

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Posted by Jerome Doolittle at September 16, 2011 02:43 PM
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If they lie, cheat and steal for you, they will lie, cheat and steal from you.

I would have thought that the Barings Bank disaster would have tightened up accounting controls on speculation, especially in a Swiss bank.

Posted by: evil is evil on September 16, 2011 5:17 PM

It's common in another form in the US. In this case, it was trading while black.

Posted by: Buck on September 16, 2011 5:32 PM
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