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RBS Pays $1.9 Million To Learn The Difference Between "Discount" And "Price"
Today's ISDA settlement auction process for the Dynegy CDS credit event offers some perspective on the smartest of the smart of our dealer community. Bloomberg notes that RBS was forced to pay a $1.9mm penalty for massively missing the inside bid-offer at the initial auction. In our humble opinion, it would appear that the CDS trading desk got their math wrong and posted a discount (1-R) instead of the Price they were willing to trade the deliverable bonds at. Their 29.5/31.5 bid/offer would invert to a much more reasonable 68.5/70.5 perfectly straddling the $69.5 initial midpoint of the auction. We suspect the RBS pink slips were flying rather fast on this mathematical error... Although since the BLS also works on a 1-R basis, this means that initial jobless claims will be one less for the week.
(h/t SH)
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No wonder they're at the top of Sigma X.
wtf...everyone else gets a DK during algo flash crashes
We call them P45s in the UK.
It was the Stamford office.
RBS doesn't just keep its fuckups on one continent... they export.
They prefer to be called 'rogues'.
Yo Tyler why did you pull the Hank Paulson /freddie fannie mae story from minutes ago?
uhm, page 2
Yale Finance grads head over to the RBS Stamford office.
Here in the US letting a P45 fly would mean something quite different, if not much better.
When The T answers such a trivial bold faced piece of minutia I say Hmmmmmm.
http://www.youtube.com/watch?v=XF2ayWcJfxo
But anyways. I'm going back to reading my favorite communist manifestos:
http://www.juventudrebelde.co.cu/cuba/2007-08-10/reflections-by-fidel-ca...
Thank God only the best & brightest enter the banking sector...Paging Mr. Darwin...you can collect your 'specimen' now...
Fat finger of course. Possibly a thumb.
Lulz.
Must have been Fat Bastard's Fat Finger
Somebody just floated another "rumor"
Market took off.
The only thing that will take the S&P above its 50DMA is some overnight gap, because the HFTs are not cutting it today.
1) I noticed that too, on the graphs. But look at the scale; it only moved a few points. Sideways day. I hate sideways days.
2) WTF, mate? You just had two consecutive posts, I refreshed and the other one is gone. You musta ticked Tyler off.
HYG outperforming SPY all afternoon. Would expect some last minute ramp to compress the two before close.
You can always tell who has the best blow by paroozing the bid/ask discrepancies and fat finger events.
Good thinkg it's CDS. It's off the balance sheet. No biggie.
Fed stepping in for its post-3 pm market buying fullretard session.
Now I understand why the job market for these positions is so competitive, the sheer speed at which these guys can make mistakes is a cut above the rest.
My significant other just quit the place.
Bunch of headless chickens in charge.
When did Corzine start at RBS? And who walked away with the $1.9M?
Funny how a fat-fingered (or worse) misdirection gives the market conviction that the rest of the CDS prices are reasonable.
Oh well, close enough for (UK) gubmint work.
No problem.
You guys at RBS can always go to work at the CME doing accounting checks on FCM's to make sure customer money is there. I mean, if you fuck up, who's gonna care?
http://vegasxau.blogspot.com
Now the market is selling off.
Resource stocks getting hit.
Retail stocks like HD, LOW, BBY accelerating even harder, going higher.
So clean out the store shelves, but don't put worry about replenishing...doesn't that say the end is nigh, Robo?
... while every single fucking growth leader from the previous bull continues to get gang raped. spy and dji outperforming iwm and qqq - that's always a good sign of a healthy market, "investors" fleeing to mega cap "value." oh ya, and xrt is RED on the fucking day you clown.
stop cherry picking your shit bitch. wake me up when the majors start trading over the weekly 50ma.
Got a seat for Hagerup? looks like he's graduating early..
http://lastangryfan.com/2011/11/michigan-punter-will-hagerup-looks-positively-terrified-at-botching-this-snap/
Learning curve for some Ivy League educated guy. Whoops!
He's better off working in another industry anyway, so he should look on this as God's way of getting him off the wrong path early. Someday it will be viewed as humorous that anyone dealt in CDSs.
too boot,... the poor slobs in london are on the hook again, as rbs was nationalized in '09' - although still giving/ passing out record bonuses
Messed up the training account?
Dynegy... Ah, another bankruptcy worth watching. Pulled a GM and the fraudulent conveyance game. It's cool, bankruptcy law was amended by Obama. This country is so fucked up right now.
They probably had an equity guy sit in for this task. Go figure they fucked up a 1-R calc in excel.