Tag Archive for risk management

the widening financial gyre

TURNING and turning in the widening gyre The falcon cannot hear the falconer; Things fall apart; the centre cannot hold; Mere anarchy is loosed upon the world, The blood-dimmed tide is loosed, (from William Butler Yeats’ The Second Coming (1919))…

taking on the juggernauts

In Britain some fairly bold moves are afoot for addressing the great social, political and economic problem of the ultra large banks. This morning the Independent Commission on Banking (ICB) released its Interim Report, which lays out a range of…

rogue trader kerviel found guilty

Jérôme Kerviel, the former Société Générale trader who lost EUR 4.9 billion in unauthorized trading in 2008 was sentenced to three years in prison today and ordered to repay the bank the entire amount of his losses. From the FT:…

it’s the stupid culture

In my last post, it’s the culture, stupid, I noted that a review of the Société Générale scandal reveals a familiar pattern of organizational and departmental change that stressed trading and oversight systems, followed by a failure to respond to…

it’s the culture, stupid

In testimony last week, Eric Cordelle, Jérôme Kerviel’s immediate supervisor at Société Générale confirmed a point about which I’ve previously blogged: the Delta One desk on which Jérôme Kerviel worked at Société Générale exceeded trading limits “quite frequently.”  Cordelle claimed,…