THURSDAY JANUARY 24
SocGen’s Trading Loss Tops Amaranth

Societe Generale, France's second-largest bank by market capitalization, is reporting a trading loss so huge today that one analyst actually said that, at first, he thought it was some kind of “joke.” With $7.1 billion soundly wiped out (more than the $6.6 billion lost by Amaranth in 2006) the bank says its woes are stemming less from the subprime mess and more from the activities of one unidentified trader it’s now accusing of fraud. (Never mind how any trader could have kept a losing position that size so well hidden). More on how SocGen suddenly find out nearly two years of pretax profit had gone up in smoke.

January 2008

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