risky trading

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JPMorgan Ignored Scads of Red Flags

Jamie Dimon on hot seat as shareholders meet today

(Newser) - There is likely some hell yet to be paid at JPMorgan after the bank lost $2 billion on bets that were supposed to be hedges. The firm's shareholders are meeting today, and many want to knock CEO Jamie Dimon out of the chairman post, Reuters reports—including the California...

Jon Corzine Blew Off MF Global Risk Executive Michael Roseman on European Bond Dangers
 Corzine Blew Off Risk Officer 
Dec 6, 2011 8:31 AM CST

Corzine Blew Off Risk Officer

CRO Michael Roseman went to board of directors with fears

(Newser) - Jon Corzine can’t say that nobody warned him that his bets on European debt might ruin MF Global, because his chief risk officer did just that—repeatedly. Michael Roseman told Corzine that the company didn’t have the cash to handle the risk it was taking on, and that...

Fed Plans to Oversee Bankers' Pay

Sweeping new rules will let central bank reject risky compensation plans

(Newser) - A wide-ranging plan by the Federal Reserve to limit executive pay would allow government regulators to probe private financial institution's pay practices—and let the Fed block any policy it thinks may encourage undue risk. The plan is still being formulated and won't be finished for weeks, but it requires...

Greenspan: 'Crisis Will Happen Again'
Greenspan: 'Crisis Will Happen Again'
INTERVIEW
Sep 9, 2009 5:26 AM CDT

Greenspan: 'Crisis Will Happen Again'

Former Fed chairman denies responsibility, blames human nature

(Newser) - Another financial crisis is inevitable "unless somebody can find a way to change human nature," says Alan Greenspan in an interview with the BBC. The former Fed chairman—who has faced stinging criticism for his own role in precipitating the 2008-09 global recession—denied any responsibility for the...

FDIC Chief Seeks Limits on 'Eye-Popping' Banker Pay

(Newser) - The big banks should rein in the "eye-popping" salaries they pay top execs and shift to a more principles-based rewards system, FDIC chief Sheila Bair tells Bloomberg. Bair, along with House Democrats and New York's attorney general, says if the banks don't change their ways, regulators should set...

Be Very Afraid: Goldman Sachs Is Smiling
Be Very Afraid: Goldman Sachs Is Smiling
OPINION
Jul 15, 2009 7:41 AM CDT

Be Very Afraid: Goldman Sachs Is Smiling

High-risk model hasn't changed, could lead to new crisis, says Reich

(Newser) - Goldman Sachs is back in the black, with trading and stock underwriting revenues at an all-time high—and that should scare you, former Clinton cabinet member Robert Reich writes in Salon. While Goldman's earnings may signal that the current crisis is abating, the bank hasn't modified high-risk strategies that forced...

Volatile Market Hooked on Testosterone

Study pinpoints role of bullish hormone in boorish traders

(Newser) - The buying and selling of the world's wealth is at the mercy of aggressive men and their hormonal fluctuations, neuroscientists have discovered. While that doesn't come as a big surprise, the study isolates the major role that testosterone plays in making boorish traders exceptionally bullish—and the part the hormone...

Study Links Sex and Gambling
 Study Links Sex and Gambling 
Apr 5, 2008 7:46 AM CDT

Study Links Sex and Gambling

Financial risk-taking lights up brain's pleasure center

(Newser) - Taking risks with money lights up the same parts of the brain as sexual arousal, a "neuroeconomics" study has found. Men shown sexy pictures gambled more daringly than those shown scary pictures—spiders and snakes—or neutral pictures, reports the AP. The study of 15 heterosexual Stanford students focused...

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...

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...

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