atans1

Sumething must be rotten with UBS’ mgt systems

In Banks, Corporate governance on 19/09/2011 at 9:49 am

Not easy to lose US$2bn. It takes a large amount of capital to be put at risk and one has to settle trades with real money. And one has to know how to fool the risk management system.As someone who has “arbitraged”, I know that if I can’t close positions on the same day, someone in the firm will know abt the trades as the firm has to borrow money to fund a trade, or expect payment from a counterparty.

As this article explains, it’s never a one- person show, no matter what mgt claims.

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  1. I’m sure this is not the last one. Taxpayers eventually have to bail them out. The whole banking system is rotten to the core. Otherwise why are governments bailing out the banks? In Europe, they are not bailing out Greece, they are bailing out their own banks. In the US, they are not bailing out underwater homeowners, they are also bailing out the banks…

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