Massive Position

Massive Position is what a banker from Société Générale called Jérôme Kerviel $7.2 billion in losses made on bullish bets in the vanilla market. They cannot figure out how or why he did it. He apparently did not benefit from these losses, but one has to wonder...Who would benefit from the demise of one of Frances top and most stable financial institutions. Why would a quite trader who was incredibly lucky to have a job ear marked for a graduate of a Grande Ecole be willing to risk his position for losses.

Maybe he did benefit from the loses, but not directly. Maybe someone else benefited from the loses and paid him to lose. hhmmmm....

I am certainly no banker, but I would hope that it takes a certain amount of effort to lose such an amount of money. I would also hope that someone would notice at say the 1 billion mark and start asking question. Mr. Kerviel has to be quite smart if he was able to outwit the bank for such a period of time and dealing with said amount of the money.

I guess we should always watch out for the quite ones.

These are merely my musings, for it all seems surreal.

On a final note this is also my bank here in Noumea.