rogue trader

18 Stories

UBS Slapped With $47.5M Rogue Trader Fine

Defective controls led to $2.3B loss, UK regulators say

(Newser) - UBS has been fined $47.5 million for being sloppy enough to let a rogue trader lose $2.3 billion, the New York Times reports. British regulators fined the Swiss banking giant after concluding that the bank's "seriously defective" systems and controls allowed London-based trader Kweku Adoboli's... More »

SocGen 'Rogue Trader' Gets 3 Years in Prison

And fined $6.36B

(Newser) - A Paris appeals court today sent Societe Generale "rogue trader" Jerome Kerviel to prison for three years today and ordered him to repay his employers roughly $7 billion. The ruling upholds a lower court's sentence that according to the AP shocked many in France, where many bought into... More »

Psychopaths More Cautious Than Stockbrokers

Stock traders prove more reckless, ruthless in simulations, tests

(Newser) - Don’t call rogue traders like Kweku Adoboli a psycho—because that may not be fair to psychos. A new study from the University of St. Gallen in Switzerland pitted a group of stockbrokers against a group of actual psychopaths in various computer simulations and intelligence tests, and found that... More »

UBS Jacks Rogue Loss to $2.3B

Resolute CEO Oswald Gruebel says he's not quitting

(Newser) - UBS has revised the $2 billion loss it suffered at the hands of a rogue trader this week, and not in a good way: The actual damage was $2.3 billion, reports the BBC . The grim news comes amid increased scrutiny of the banking giant, after reports that its internal... More »

Rogue UBS Trader Turned Himself In

And that's the only way the bank found him

(Newser) - So who was the crack financial sleuth who caught rogue UBS trader Kweku Adoboli? Um, that’d be Kweku Adoboli. UBS’ internal systems didn’t blink at Adoboli’s $2 billion screw-up ; it only came to light because he brought it to his bosses’ attention, the BBC reports. The revelation... More »

Rogue UBS Trader Loses $2B

Swiss bank's shares dive after unauthorized trading revealed

(Newser) - A rogue trader at UBS has lost around $2 billion, the Swiss banking giant says. The unauthorized trades by a trader in its investment banking unit "could lead UBS to report a loss for the third quarter of 2011," but "no client positions were affected," the... More »

SocGen Rogue Trader Guilty; Must Repay $6.7B

Kerviel will serve 3 years in prison in bank meltdown

(Newser) - A trader who brought Societe Generale to the brink of collapse in 2008 has been sentenced to three years in prison and ordered to repay the $6.7 billion his unauthorized trades cost the French bank. Jerome Kerviel, 33, was found guilty of breach of trust and computer hacking and... More »

Rogue Trader Shocks Oil Market

Crude hits highest level in a year on unauthorized trades

(Newser) - On Tuesday, the price of oil spiked unexpectedly to its highest level in 2009—a barrel of crude jumped from $71 to $73.50 in just one hour, for no apparent reason. Yesterday the reason became clear: a rogue broker in London with PVM, the world's largest petroleum brokerage, had... More »

Rogue Trader Gets a Job

IT company hires man behind biggest trading scandal in history

(Newser) - Jérôme Kerviel is working once again, despite having cost France’s Société Générale $7.68 billion in unauthorized trading. Released from prison a few weeks ago, the rogue trader is employed as an IT consultant for a French company specializing in networks and security, the... More »

SocGen CEO Resigns Over Rogue Trader

Bouton steps down at last; future remains grim for French bank

(Newser) - The CEO of Société Générale will step down, at last bowing to pressure in the wake of the $7.8 billion rogue trading scandal. Although investors and politicians—including French President Nicolas Sarkozy—had demanded Daniel Bouton's resignation immediately after the revelation of Jérôme Kerviel's... More »

Rogue Trader to Sue SocGen

Kerviel claims his accounts were in the black

(Newser) - The rogue trader whose $7.8 billion in transactions nearly sank Société Générale has filed papers in preparation for a wrongful dismissal lawsuit, the Times of London reports. Jérôme Kerviel will claim the French bank has failed to prove he did anything wrong. He was... More »

Credit Suisse Warning Revives Rogue Trader Fears

'Intentional misconduct' behind billions in writedowns

(Newser) - Investment banks got a brief lift from Wall Street results this week, but surprising reports from Credit Suisse are likely to send their confidence back into the basement, the Financial Times reports. The Swiss firm issued an unexpected first-quarter profits warning yesterday—and said “intentional misconduct” from its own... More »

France Frees Rogue Trader Kerviel

He'll be under 'judicial control' during probe of $8B SocGen loss

(Newser) - Jerome Kerviel, the trader accused of an $8 billion fraud that nearly brought down Societe Generale, has been freed by a Paris court after five weeks in detention, the Guardian reports. The trader, who faces charges including breach of trust and falsifying documents, will remain free while the case is... More »

Second SocGen Broker Held in Kerviel Probe

Could derail rogue trader's chances of getting released

(Newser) - Authorities have taken a second Societe Generale employee into custody and conducted a search of La Defense headquarters, as the probe into unauthorized securities trading that cost the French bank $7.6 billion expands, reports Bloomberg. Police are holding a broker from a bank subsidiary, said a SocGen spokeswoman. Another... More »

SocGen: Lax Controls Led to $7.2B Fraud

French bank says 24 internal alarms were ignored over 14 months

(Newser) - Rogue SocGen trader Jerome Kerviel, whose unauthorized deals led to a $7.2 billion loss for the French bank, continued his trading for more than a year after the first warning flag was raised in the department that was supposed to detect risky trading, reports the Wall Street Journal. Kerviel... More »

SocGen Trader Headed for Jail

Paris court rules Kerviel must spend investigation behind bars

(Newser) - A Paris court ruled today that rogue trader Jérôme Kerviel should be behind bars during the remainder of the investigation into his case, the New York Times reports. Kerviel is suspected of fake trading that cost French bank Société Générale $7 billion. When he heard... More »

Trader Won't Be SocGen's 'Scapegoat'

Kerviel breaks silence, says bank turned a blind eye to scheme

(Newser) - Jerome Kerviel will not “be made a scapegoat” for the huge losses at Société Générale, he told AFP today in his first public comments since his trading scheme was discovered. Kerviel said he had been “designated” as the sole wrongdoer by the French bank, which... More »

Rogue Trader Says SocGen Looked the Other Way

Kerviel says he was up $2B at the end of 2007

(Newser) - Jérôme Kerviel, the trader at the root of the $7.1 billion scandal roiling French banking giant Société Générale, says his bosses knew what he was up to, and they didn't stop him as long as he was generating huge profits—$2 billion by the... More »

18 Stories