Comments on: Bankers and Investors http://www.dailyreckoning.com.au/bankers-and-investors/2008/01/29/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Cynical http://www.dailyreckoning.com.au/bankers-and-investors/2008/01/29/comment-page-1/#comment-6432 Cynical Tue, 29 Jan 2008 10:37:28 +0000 http://www.dailyreckoning.com.au/bankers-and-investors/2008/01/29/#comment-6432 Does anyone smell a rat? I do. The SocGen 'lone rogue trader' and 'fraud' story seems to have unwound over the last few days a little too neatly. I suspect the PR boys have been working hard to contain or divert blame. What's the real story? Does anyone smell a rat? I do. The SocGen 'lone rogue trader' and 'fraud' story seems to have unwound over the last few days a little too neatly. I suspect the PR boys have been working hard to contain or divert blame. What's the real story?

]]> By: Coffee Addict http://www.dailyreckoning.com.au/bankers-and-investors/2008/01/29/comment-page-1/#comment-6423 Coffee Addict Tue, 29 Jan 2008 05:32:54 +0000 http://www.dailyreckoning.com.au/bankers-and-investors/2008/01/29/#comment-6423 Jerome Kerviel's is not the only trader to enter into "technically" unauthorised futures positions. While the trades were not endorsed, there must have been some level of implicit acceptance within the Bank’s culture that traders could and indeed should operate autonomously (to deliver results). In the English speaking countries, a criminal conviction requires proof, beyond reasonable doubt, of a criminal intent. The prosecution would therefore need to demonstrate an intent to harm the bank or an intent to realise direct personal benefit at the banks cost. None of these conditions appear to have been met. French justice may be more pragmatic – have no idea – but I am interested in following the case. Jerome Kerviel's is not the only trader to enter into "technically" unauthorised futures positions. While the trades were not endorsed, there must have been some level of implicit acceptance within the Bank’s culture that traders could and indeed should operate autonomously (to deliver results).

In the English speaking countries, a criminal conviction requires proof, beyond reasonable doubt, of a criminal intent. The prosecution would therefore need to demonstrate an intent to harm the bank or an intent to realise direct personal benefit at the banks cost. None of these conditions appear to have been met. French justice may be more pragmatic – have no idea – but I am interested in following the case.

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