Monday, 1 September 2014
Last updated 3 days ago
Jun 17 2010 | 12:09pm ET
A phony hedge fund client helped rouge trader Jerome Kerviel bring Société Générale to the brink of collapse two years ago, he told a Paris court this week.
When Moussa Bakir at SocGen brokerage Fimat asked Kerviel about his trades, Kerviel said a hedge fund manager named “Matt” was pushing him to do so.
“I told him a fib,” Kerviel testified, explaining that Bakir “wanted to know what my underlying strategy was.” He told the broker that “Matt” was determined to make a €1 billion profit, adding color to his invention by noting that he was a big rugby fan.
Kerviel’s other falsifications seem to have lacked that finesse. He admitted today to creating bogus transactions and e-mails, as well as entering false information into SocGen’s computer system. Even Kerviel was shocked that these ham-handed efforts fooled his superiors.
“The explanation was not credible,” he said.
Kerviel faces up to five years in prison if convicted of breach of trust, computer abuse and forgery. His trades, designed to earn “Matt” €1 billion, actually cost SocGen €4.9 billion.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...