‘Risk Magazine’ Stands Behind (Possibly Flawed) Nomination Process

Posted by Bess Levin, Jan 24, 2008, 1:55pm

Alright, so there may have been some sort of mix-up with Société Générale’s accounting but Risk wants you to know that it continues to believe that the French bank deserves the equity derivatives house of the year award. The prize was given on the basis of SG’s innovation in derivatives in 2007, and we submit that in order to scale the heights of an illustrious list of criminals that includes everyone from Nick Lesson to that inimitable puppy lover, and in doing so dethrone the immortal Brian Hunter, Jerome Kerviel must’ve done a little if not a lot of “thinking outside the box.” Plus, it would be a bitch to take the honor back and give to someone else, as the plaque has already been engraved. In other news, Billion Dollar Fraud Quarterly also plans on rewarding SG for its innovation this year, and there’s power in numbers. DealBook’s Andrew Ross Sorkin is also giving props in a blog post later this afternoon and Ron Blarney has been rallying behind SG in AOL chat rooms since he woke up.

In our defence [Risk Magazine]
Equity Derivatives House of the Year - Société Générale [Risk Magazine]

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Comments

Posted by , Jan 24, 2008 2:02PM

douches
And that Alexander Campbell, Web Editor, is the biggest douche of all:
SG "launched a number of products first, including a structure linked to the implied volatility smile on a basket of stocks" -- yeah, that's a way to lose your shirt in last wee's markets

Posted by Anonymous, Jan 24, 2008 2:09PM

Don't know much finance but doesn't take a genius to realize things are wacky when banks are selling and investors buying "a number of products...including a structure linked to the implied volatility smile on a basket of stocks." Wonder who is grinning today?

Posted by Commodities Desk, Jan 24, 2008 2:21PM

Brian Hunter's no longer #1? Oh, how the mighty have fallen, and to a French guy... the shame.

Posted by , Jan 24, 2008 2:47PM

Snarkmongers, there but for the grace of God go you. One day, you're riding high, next day, you've given Andy Fastow an award for being best at capital structure management.

Posted by Nominate me, Jan 24, 2008 2:47PM

America must take back this throne!

I'm looking at you Wall Street. Who will step up to the plate?

Posted by , Jan 24, 2008 2:49PM

Snarkmongers, there but for the grace of God go you. One day, you're riding high, next day, you've given Andy Fastow an award for being best at capital structure management.

Posted by Has Studied Rogues, Jan 24, 2008 2:51PM

I think the French guy was trying to prove a point to someone on his own desk... the lack of bonus being reported for him over the years is a big clue I would think...Hell hath no fury as a humiliated trader.

So he made huge bets...probably was criticised for "size" in the past....so "quete'tu", I'll show you some size! Then it goes bad so he has to hide them someway which he had probably done many times in the past on smaller trades that he was able to slip by.

When SocGen decides to incent an employee with a million Euro salary to PREVENT money from going out the SocGen door by such dickhead traders, the problem will be solved.

Posted by lift all the offers, Jan 24, 2008 2:55PM

The moral of the story is don't expect financial journalists to do your due diligence.

Posted by just me, Jan 24, 2008 3:00PM

With all these genius bank traders, lets bet which bank will be next to disclose they failed to notice a $7 billion dollar margin call being made.

Posted by Ha, Jan 24, 2008 3:05PM

Nominate Me - I have enough equity swap notional at my disposal to reclaim this title for the stars and stripes in spades, but, surefire street blacklisting, legal fees, and potential incarceration aside, is it really worth suffering the added ignominy of having one's most awkward highschool yearbook plastered on page one of dealbreaker for every disgruntled ex-BofA securities to take pot-shots at?

Posted by , Jan 24, 2008 3:14PM

@Ha - it's call, all you have to do is email Bess and she will take it down for you

Posted by sparky9099, Jan 24, 2008 3:14PM

@02:47

Brian Hunter is Canadian, not American. So, unless you meant American in the broader sense of North American, America never had this honor and thus cannot re-take it.

Posted by Nominate me, Jan 24, 2008 3:42PM

@ sparky9099

I don't let facts get in the way of my patriotism.

Posted by , Jan 24, 2008 4:06PM

The nominal $7.2 billion may be beaten some day soon, but it will be nearly impossible to eclipse francois here on the ratio of loss size to salary paid to the trader who caused the loss

at 100k euro, this mec will stand the test of time

Posted by Nominate me, Jan 24, 2008 4:08PM

@ sparky9099

I don't let facts get in the way of my patriotism.

Posted by Tat, Jan 24, 2008 4:38PM

Brian doesn't count. Those were just run of the mill trading losses. If you aren't stashing confirms behind the copier, it is just cheating.

The one lesson to learn is never promote the back office pukes to the floor. The combination of greed, jealousy, bitterness and an intimate knowledge of just how screwed up the back office is is way too dangerous.

Posted by gab, Jan 24, 2008 5:30PM

So, the B Berg article says he was up "massively" (I mean in his trades, you perverts) at the end of the year. So SG didn't know that he was up big? And he didn't tell 'em? That makes no effing sense whatsoever. They have to be lying.

Posted by Ha, Jan 24, 2008 9:22PM

I know, it's like:

Director: "So Kerviel, how we looking on those DAX lots?" [he speaks English because he's probably a Barclays transplant; the Giscard made it clear long ago the French have no idea what they're doing in capital markets]
Kerviel: *sniveling* "Ehh, je pense que je suis up trois cent handles"
Director: "Brilliant! [turns and whispers to Associate] Why the damn does he never ask for more money around this place?"
[Associate shrugs]

And then two weeks later somebody discovers everything in the black on his books is fictional and every hedge has drowned?? Bulls**t...

Posted by HedgingRisk, Jan 25, 2008 1:40AM

@4:06, even better is the over all damage done to the world equity markets per dollars of salary. I believe he will go down in history as the biggest flock up per paid salary dollar in history.

At one point, this DB dropped the Euro markets by 10% in two days, before the US opened.

Estimates are as high as 1 Trillion dollars of carnage in the world markets before his trades were flat.

SG has to be proud... They caused the biggest unwind in modern history... This kid is a 911 sigma event...

Now we get to find out which Quant's blew up from the latest 36 sigma plus event to hit the market this year.

HR

Posted by Non Journalist, Jan 25, 2008 6:49AM

another boring story - what worries me that all you so called journalists have a laugh about this award but not one of you broke the story. You are all guilty of being useless

Real journalism please!

Posted by , Jan 25, 2008 7:54AM

oh, it worries you, dbag? fuck off.

Posted by , Jan 25, 2008 7:57AM

second that fuck off

Posted by lurker, Jan 25, 2008 9:03AM

@6:49am. you just wasted several pixels on my monitor with your bitchiness. piss off.

Posted by non jounalist, Jan 25, 2008 10:11AM

so mature of you! this is a losers site

Posted by , Jan 25, 2008 10:14AM

This blog is a joke. It's like little schoolboys showing each other their privates

Posted by 10:11/14 is a douche, Jan 25, 2008 10:23AM

this blog is a joke you took the time to post on. funny thing is this blog is read by virtually everyone who works on the street and its outliers, so i guess the joke's on us?

Posted by lurker, Jan 25, 2008 10:39AM

@10:11/14 - clearly the same person, and if not they should fuck each other. since you don't want to see my 'privates' perhaps you should go back to fiddling with yours.

Posted by a little known greek, Jan 25, 2008 12:09PM

the rise of the risk manager will shortly be upon us. those guys at risk will make a fortune, do they do risk management awards? who won that? Euromoney gave risk manager of the year to bear sterns... doh

Posted by a little known greek, Jan 25, 2008 12:10PM

the rise of the risk manager will shortly be upon us. those guys at risk magazine will make a fortune, do they do risk management awards? who won that? Euromoney gave risk manager of the year to bear sterns... doh

Posted by a little known greek, Jan 25, 2008 12:11PM

the rise of the risk manager will shortly be upon us. those guys at risk magazine will make a fortune, do they do risk management awards? who won that? Euromoney gave risk manager of the year to bear sterns... doh

Posted by a little known greek, Jan 25, 2008 12:17PM

The rise of the risk manager will shortly be upon us. The guys at risk magazine are quids in......their core are

Euromeney gave my favourite award this year Bear Sterns.... Risk manager of the year just before the sub-prime writedowns...doh...

Posted by Anon, Jan 26, 2008 4:40AM

How exactly are a bunch of financial hacks supposed to detect a rogue trader that even the bank hadn't caught?

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