In June 2007, the trader allegedly posted a negative
Posted: Sun Jan 12, 2025 5:48 am
Bank's risk control considered that he was actually covered. Thus, this dishonest trader is the major player in the losses of Société Générale discovered on 18 January 2008, resulting from the liquidation of its positions on futures contracts on stock indices amounting at that time to approximately 50 billion euros. On 24 January 2008, on the occasion of the publication of its 2007 financial year results, Société Générale's management organised a press conference t o skype database reveal the affair of which it claims to be the victim. According to Daniel Bouton, CEO of the bank, a market operator, part of its staff, allegedly exposed the bank to a market risk when this was not part of his duties. He allegedly accumulated long positions on futures contracts on indices and concealed these market transactions by introducing fictitious inverse transactions into Société Générale's computer system to offset them.
valuation of 2.2 billion euros on the 30 billion euros position he had accumulated and the trader then took rather fortunate positions to achieve a cumulative gain of 1.4 billion euros for 2007 as of 31 December 2007 (if he had been discovered that day, the bank would have recorded a profit of 1.4 billion euros)! By successfully hiding the importance and risk of the positions he had taken thanks to his very good knowledge of internal control procedures, knowledge he had acquired during his several years spent in the " middle office ", i.e. in risk management control. According to the bank's management, there was no personal enrichment, which turned out to be true. According to the bank, he admitted during the internal investigation of Société Générale at the time of the discovery of his embezzlement, to having carried out the disputed transactions and to having concealed them.
When the secret positions were discovered on 18 January 2008, the latent loss recorded was quite low given the amounts involved, but Société Générale considered that this exposed it to considerable risks, which was true since the open position (80 billion euros of uncovered exposure) held was almos
valuation of 2.2 billion euros on the 30 billion euros position he had accumulated and the trader then took rather fortunate positions to achieve a cumulative gain of 1.4 billion euros for 2007 as of 31 December 2007 (if he had been discovered that day, the bank would have recorded a profit of 1.4 billion euros)! By successfully hiding the importance and risk of the positions he had taken thanks to his very good knowledge of internal control procedures, knowledge he had acquired during his several years spent in the " middle office ", i.e. in risk management control. According to the bank's management, there was no personal enrichment, which turned out to be true. According to the bank, he admitted during the internal investigation of Société Générale at the time of the discovery of his embezzlement, to having carried out the disputed transactions and to having concealed them.
When the secret positions were discovered on 18 January 2008, the latent loss recorded was quite low given the amounts involved, but Société Générale considered that this exposed it to considerable risks, which was true since the open position (80 billion euros of uncovered exposure) held was almos