Wednesday, 22 October 2014
Last updated 14 hours ago
Jul 3 2008 | 12:23pm ET
Hedge fund manager Wolfgang Flöttl and eight others are set to learn their fate tomorrow in the case of Austrian bank BAWAG, which found itself in the news after being caught up in the Refco scandal three years ago.
A court in Vienna is set to hand down verdicts on charges of breach of trust, false accounting and fraud for their role in the derivatives trades that resulted in BAWAG losing more than US$2 billion, after a trial of nearly a year. If convicted, Flöttl, former bank CEO Helmut Elsner, a former trade union finance chief, a KPMG auditor and their co-defendants face as much as 10 years in prison.
“Flöttl’s pockets were stuffed with money and he was sent to the casino,” prosecutor Georg Krakow said of the former Ross Capital Markets manager, who is also the son of a former BAWAG president. “He came back, his pockets turned inside out and said, ‘I’ve lost it all.’ Thereupon, they reached into the treasure chest, stuffed his pockets again and sent him back to the casino.”
Elsner and the other former BAWAG executives say that Flöttl was a rogue trader, ignoring the bank’s investment rules. Flöttl charges that under his deal with the bank, he was free to invest the money however he saw fit. He also says he warned Elsner about the risks involved.
BAWAG was bought by private equity firm Cerberus Capital Management in late 2006.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...