Thursday, January 24, 2008

French bank blames trader for $7 billion fraud

Found this on MSNBC:

PARIS - French bank Societe Generale said Thursday it has uncovered a $7.14 billion fraud — one of history’s biggest — by a single futures trader whose scheme of fictitious transactions was discovered as stock markets began to stumble in recent days.

Read the rest here. Scary.

Especially telling - this is the second paragraph from the end:

“In hindsight, it was this guy’s superior knowledge of the control system of every aspect of trading at the bank that allowed him to build up fraudulent positions and hide them.”