Soc Gen, Rogue Traders and Scapegoats

March 27, 2008 |

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It looks like CSFB has joined the ranks of those institutions with supposed “rogue traders” that senior executives are blaming for all of their troubles.  I have to admit that I am one of the conspiracy theorists claiming that Soc Gen sacrificed Jerome Kervial as a smoke and mirror tactic to divert attention away from the company’s other woes.  Now it seems that every large bank facing sub prime related losses is coming up with a middle management “rogue trader” to blame their troubles on.  It’s interesting how the boards of directors and senior management never questioned risk management and operations during good times when they were taking fat structuring fees and pushing mass amounts of product into the system.  Let’s see more CEO heads roll!

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