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Kerviel: Le Retour? Rumor Of Massive SocGen Derivative Loss
SocGen is plunging after Reuters has reported rumors about concerns of a massive loss in the firm's derivative division. Deja vu? "Societe Generale, which declined to comment on market rumour, fell 6.3 percent. BBVA and Credit Agricole fell 5 and 3.8 percent respectively."
In other news, Euro is plunging, and taking futures down with it.
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good morning tyler - I was wondering why the euro dropped below 1.2100. shit seems to be hitting the fan for the last 20 min
I bet ECB will intervene at 1.2
Derivatives and fall of housing will be blamed for the system crash, eventually the top of the pyramid will say we will just use more regulation to control derivatives and the housing market, this will be used to get the lemmings back marching again, wake me up in a generation or two. The lemmings just want something to blame, that don't care who as long as it's someone or something other than themselves.
"You hear that Mr. Anderson?... That is the sound of inevitability..."
The people in charge and at the top didn't get that way by being stupid, oh no, they have the lower bottom dwellers called lemmings doing the work for them. The lemmings work, send it to the top of the food chain, the penthouse sends some of it back, but when the lemmings at the bottom of the basement no longer supply the penthouse what is required, well the penthouse dwellers can't do anything for the basement lemmings.
The penthouse hires so called educated bottom dwellers to lead the rest of lemmings. This is where the myth of Helicopter Ben comes in, Ben wouldn't be doing is job correctly if the lemmings didn't think Ben was coming to drop dollars out of the sky to save them. Just like Greenie before him, he is doing an excellent job convincing you the Helicopters are coming, that keeps all you guys in line marching along.
The people living in the penthouse are not stupid, oh no, you are, you are stupid lemming marching along to the drums the person in the penthouse gave you.
RuhRoh...
So if that payroll announcement comes out flat or whifs, the bears win this one. I almost caved to the bull rhetoric yesterday.
Shows how thin the bull sentiment is. No buyers can't overcome bad rumors.
Check out sovereign single name CDS.
WTF !!!
Plus the Hungarian prime minister has been out talking about default as an option
Also, Netanyahu vows Turkish supplied boats won't break embargo.
Wonder if TPTB are adjusting the jobs data upwards as we speak?
Is this the beginning of the end?
Or the end of the beginning?
No comment, while the PHD* Desk's try to figure out its T from A.
*Soc Gen used to take pride in the fact it had the highest % of PHD's on it desk teams....
I've seen so many rumours of massive losses from GLE over the years - all true in 2008/09 - but they dont break down their trading performance by division so no investor can really tell, they keep it very quiet. Very french.
They still do take pride in their PhDs. Their traders are very arrogant, and underpaid compared to the street. Which always makes the rest of us smile.
Obviously these PHDs have not learned a damn thing from last year. did they received the 100% on the dollar from AIG bailout? apparently they got a lot shit in their hands, and it will blow up eventually. Now its the time.
“The clock's ticking, Pops, and I'm only getting older.”
We were wqaiting for this; "2 years in 2 minutes", monster type moves should hit hard the 60 trillion derivative market.
Tip of the iceberg??
Swiss dumping Euro's , and somewhere in Europe they confirmed the SocGen problem is not an exaggeration. Its real and will most likely be the catalyst sending markets into the dumps and chaos everywhere. I don't care what fake job numbers they manufacture, SocGen default will crash markets.
SocGen is the tip of the iceberg we see, its contagious, many others are effected.
Did you notice, first time yesterday the Euro lost the 1.22+ defending line, now its down to 1.21+, the ECB,FED is losing control( or were they busy in G-20 meeting? ), next week will be more fun.
Looks like another US Bailout by the Taxpayer. Dont look at me man, I am already $5,000 in the hole. My new 15" Mac bookpro and ipad are doing well, But it took me back 5 Large. Sorry Bernanke, Go bother some other prominent creature.
Humpty is teetering on the wall.
Buy those dips.
If I lean a bit more this way, I'll regain my balance, I'm certain....
classic
Hey better go pick up those Solars before the market takes off...
Leo will be on soon spewing how this now sets up a huge "buy the dip" opportunity.
All these bulltards will soon find out there's such a thing as buying a dip too far.
No....I think he's going to be on the phone with his broker today...probably wiring additional funds or choosing which positions he would rather liquidate...if he's lucky enough.
Will SocGen go bankrupt? Or will it be able to access money from the 1 trillion dollars euro-bailout?
RTRS-SOCIETE GENERALE ON DERIVATIVES RUMOUR – “IF WE HAD SOMETHING TO SAY WE WOULD HAVE SAID IT”
No you wouldnt you arrogant secretive smelly lying french scumbags. You never do.
To be honest I'm not sure correlation and vol have spiked enough in any market to cause extreme losses to a derivatives book. If its true, its either a fuckup (which we will never hear the details of) or its another criminal liar like Kerviel.
Spanish downgrade could have easily trigger a CC. We have no idea what kind of contracts were written on those derivatives. Also, with all the loan downgrades LCDS could have easily triggered a CC or even some trivial shit like MCDS REs getting murdered [remember Spanish CDOs downgrade; who knows from what where those CDOs structured]. There is more to this then they are telling, thats for sure, CDS market doesnt go vertical based on absolutely nothing. Something is afoot and they are not saying shit since they dont know what the fuck is going on.
This is what happens when they are unregulated and don't clear through an exchange.
On an unrelated matter, when am I going to see Chris Dodd hanging from a tree?
Has nothing to do with whether they were going through an exchange, the system would have been falling apart a long time ago without companies using these vehicles to leverage up.
Never, that would make him well hung. Sorry, just couldn't pass up a bit of gallows' humor.
Fair point, I was concentrating on their huge structured Equity & FID desks.
I'm reminded of the BNP announcement that they couldnt value their 2 credit funds in Aug 2007? Translation - we got our monthly valuations of the CDO investments and they were so low we shat ourselves and daren't tell the investors. The french banks almost never admit a fuckup.
Ho hum ! More bailouts. Got gold ?
We have discussed extensively about the derivatives as weapons of mass destruction. when the weapon explodes, it will destroy the economy. guess what, it will destroy the very firms holding the shit too. GS, are you listening?
I hope they don't fire Dylan Grice and Albert Edwards.
Oh no, not another "rogue trader" incident!