French bank SocGen says hit by $7.1 billion fraud

Fed Up · 01-24-2008, 09:44 AM

French bank SocGen says hit by $7.1 billion fraud

PARIS (Reuters) - French bank Societe Generale (SOGN.PA) said fraud by a single trader had caused it a 4.9 billion euro ($7.1 billion) loss and that it would seek emergency funds as a result, shocking battered markets.

If fraud is proved, the loss will be the biggest caused by a rogue trader, ahead of the $2.6 billion hit to Sumitomo Corp caused by copper trader Yasuo Hamanaka and the $1.4 billion loss caused to Barings by Nick Leeson, both in the 1990s. It also eclipses a $6 billion loss racked up by hedge fund Amaranth trader Brian Hunter and his team ahead of its collapse in 2006.

UBS said in a research note that the fraud would impact the credibility of its derivatives business, which has been one of its fastest-growing units and has a world-leading reputation.

Analysts said the episode would have a major impact on the reputation of SocGen, which was founded in 1864 and is one of France's most prestigious blue-chip companies.

Domino effect?

Read the rest:

http://news.yahoo.com/s/nm/20080124/bs_nm/socgen_dc_6

WickedLou9 · 01-24-2008, 10:26 AM

If it's one thing that the banking industry did not need it's another scandal

RMNIXON · 01-25-2008, 05:40 PM

Second largest bank in France.

But then it is France.

Fed Up · 01-25-2008, 06:05 PM

Originally Posted by RMNIXON

Second largest bank in France.

But then it is France.

You heard they apologized right? So I guess everything is ok now....

...except for the shareholders who lost 50% of their investment

....

Fed Up

WickedLou9 · 01-25-2008, 06:10 PM

Originally Posted by Fed Up

You heard they apologized right? So I guess everything is ok now....

...except for the shareholders who lost 50% of their investment....

Fed Up

Oh hey about your money... yeah it's mostly gone.
Sorry. My bad.

thatguyoverthere · 01-26-2008, 12:57 AM

I'm getting really worried about all this stuff. Do you think that it might have a domino effect? Banks have not exactly been on stable ground for the last few months, as I understand it.

Frankly, I've been listening to a lot of news and political discussion shows in the last week, and I've noticed a disturbing trend of folks comparing recent economic numbers to figures not seen since the Depression. A few others have said that there are problems below the surface that mean the situation is actually worse than it appears. Has anyone else noticed this? Is anyone else seriously concerned?

Fed Up · 01-26-2008, 02:15 AM

Originally Posted by thatguyoverthere

I'm getting really worried about all this stuff. Do you think that it might have a domino effect? Banks have not exactly been on stable ground for the last few months, as I understand it.

Frankly, I've been listening to a lot of news and political discussion shows in the last week, and I've noticed a disturbing trend of folks comparing recent economic numbers to figures not seen since the Depression. A few others have said that there are problems below the surface that mean the situation is actually worse than it appears. Has anyone else noticed this? Is anyone else seriously concerned?

The guy in this video, Peter Schiff has a good handle on things. He was just hired as an economic advisor to the Ron Paul 2008 Presidential Campaign.

YouTube - 1/7/2008- Ron Paul Supporter Peter Schiff On Glenn Beck

http://www.pr-inside.com/peter-schiff-named-economic-advisor-to-r405742.htm

I met him at the FreedomFest last April and liked what he had to say then. They don't like him too much on CNBC, lol.

Fed Up

thatguyoverthere · 01-26-2008, 10:14 AM

Originally Posted by Fed Up

The guy in this video, Peter Schiff has a good handle on things. He was just hired as an economic advisor to the Ron Paul 2008 Presidential Campaign.

YouTube - 1/7/2008- Ron Paul Supporter Peter Schiff On Glenn Beck

http://www.pr-inside.com/peter-schiff-named-economic-advisor-to-r405742.htm

I met him at the FreedomFest last April and liked what he had to say then. They don't like him too much on CNBC, lol.

Fed Up

That didn't cheer me up much at all. There were multiple comparisons of current numbers to Depression numbers in that clip, just like I said in my earlier post. I'm troubled by the fact that I seem to be hearing that more and more from many different sources in recent weeks.

Fed Up · 01-26-2008, 02:09 PM

Originally Posted by thatguyoverthere

That didn't cheer me up much at all. There were multiple comparisons of current numbers to Depression numbers in that clip, just like I said in my earlier post. I'm troubled by the fact that I seem to be hearing that more and more from many different sources in recent weeks.

There are two sides to this....

and I didn't know I was supposed to cheer you up, lol...

...but there are solutions.

The first side is that those who believe what Peter Schiff thinks/sees is going to happen, can adjust their financial portfolios accordingly and prepare for the coming abyss.

On the other side of the equation, if what he says is going to happen, and for that matter, Ron Paul...when he speaks about "the coming bankruptcy of America," it can't be good for most Americans. The continued spending that our government does in cranking up the printing presses and taking us further and further into debt and destroying the value of the dollar via inflation has to be curtailed if America is to prosper again.

Ron Paul during the last debate, "And here we are, we're at the verge of bankruptcy. We're moving into a new era, believe it or not, with the dollar and our economy and the world economy, this is a new era."

Estote Parati!

Fed Up