It may have been a “rogue trader” that caused a $7 billion loss for Société Générale, or maybe it wasn’t.
If someone, say six months from now, came out and said Société Générale lost that money on the up-and-up, that like every other bank on planet Earth they made big bets on mortgage securities and related derivatives, summarily lost their shirts, and then found someone to pin it on, I wouldn’t be a bit surprised.
Regardless, every single person even remotely associated with the compliance department at that financial institution should be sent packing immediately.
It just doesn’t pass my smell test.
UPDATE: Henry Blodget says the rogue trader/patsy/what-have-you still performed better than some Wall Street traders.
UPDATE 2: Of course Jermone Kerviel’s Facebook friends aren’t truly friends. All those “friends” wanted to do was get noticed themselves.
UPDATE 3: But, the Fed didn’t know about this before their historic rate cut. Either they’re out of touch, or…I’ve got a bridge I want to sell you.
UPDATE 4: Fodder for conspiracy theorists.