SocGen's Big Mistakes
Did Jerome Kerviel and Societe Generale cause Monday's market meltdown? I asked the question yesterday, and today it's looking increasingly as though the answer might be yes. His positions are being reported at between 40 billion and 50 billion euros, which is a lot of money - but not enough to cause a big stock-market meltdown under normal conditions. The thing is, however, the conditions on Monday were far from normal, and the French bank, in liquidating them, made a couple of enormous mistakes.
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