Rogue Quant Brings Down Société Générale

Unauthorized Trades Incur US$7.14B in Losses.

As if the liquidity problems started by the US subprime bubble burst weren't enough, apparently the French Société Générale reported massive losses today caused by a rogue computer geek left unchecked at a trading terminal.

The losses generated by this single trader make even Nick Leeson look like an amateur in comparison.

Reuters links Société Générale's efforts to unwind their multi-billion euro index future positions as one possible trigger for the stock market meltdown of this Monday that caused the US Fed to cut interest rates in a panic action (which, in turn, sparked much criticism from the crème de la crème hanging around Davos this week).

Interesting indeed.

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