Wednesday, February 13, 2008

More SocGen Questions

Gunther Capelle-Blancard raises some good questions about the SocGen affair over at Telos. In particular, he wonders whether Kerviel had already started unwinding his positions before the bank claims to have discovered his fraud, as markets started their decline in the previous week. He suggests that these sales may have led to a more aggressive investigation by the bank, which had previously overlooked any irregularities. He also considers the extent to which the bank's trading might have contributed to the sharp January stock-market decline.

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