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Tag Archive: UBS


Yesterday night was sharing some past experiences with the friends and the topic was rogue traders. Some people ask why rogue traders still 813530exist. But, that seems as if it’s an easy one to answer. Fool-proof risk management doesn’t exist and never will. At, least it won’t while the rogue traders are being covered by rogue managers.

You see, the definitions at the beginning had one thing wrong. They are definitions of solitary, lone-wolves. But, even lone-wolves belong to a group. They just prefer to avoid the assistance of others in certain matters. The rogue trader’s pack is the howling, fierce management for which he works. Lone-wolves always have alpha members they take orders from, don’t they? Lone-wolves are sometimes excluded from the pack to protect that alpha-male, thus preventing ‘in-breeding’ in the pack. It’s exactly the same in the trading world of finance. The rogue trader is excluded from the pack, forced to work alone, shunned so that if caught, there will be no ‘inter-breeding’. The alpha-male manager won’t be caught and be brought down if the rogue falls!   Continue reading

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It would be too harsh to put that the Indian economy is facing one of the worse situation in the last 20 years . images

The FT published a Misery, Indian edition Index indicating fears over policy ‘credibility’ could send the Sensex in such a spin on Friday — India’s benchmark closed down almost 4 per cent — and trash the rupee…according to them this isn’t the classic misery index — for India substituted industrial production for unemployment data, which are lacking — but it’s the first time in over twenty years that it has remained stuck at such a high level, they note.   Continue reading

Yesterday night was sharing some past experiences with the friends and the topic was rogue traders. Some people ask why rogue tradersimages still exist. But, that seems as if it’s an easy one to answer. Fool-proof risk management doesn’t exist and never will. At, least it won’t while the rogue traders are being covered by rogue managers.

You see, the definitions at the beginning had one thing wrong. They are definitions of solitary, lone-wolves. But, even lone-wolves belong to a group. They just prefer to avoid the assistance of others in certain matters. The rogue trader’s pack is the howling, fierce management for which he works. Lone-wolves always have alpha members they take orders from, don’t they? Lone-wolves are sometimes excluded from the pack to protect that alpha-male, thus preventing ‘in-breeding’ in the pack. It’s exactly the same in the trading world of finance. The rogue trader is excluded from the pack, forced to work alone, shunned so that if caught, there will be no ‘inter-breeding’. The alpha-male manager won’t be caught and be brought down if the rogue falls!

So, who are the rogue traders that have experienced all of this? Here’s a small sample (the ones we know of!).  Continue reading

European Commission regulators say that 13 investment banks, the International Swaps and Derivatives Association (Isda) and Markit imagesbreached antitrust rules by colluding to prevent exchanges from entering the credit derivatives business.

The formal European Commission charge-sheet, running to almost 400 pages, alleges collusion to ensure the insurance-like contracts remained an “over-the-counter” (OTC) product – preserving the banks’ lucrative role as middlemen.

Between 2006 and 2009, Deutsche Börse and the Chicago Mercantile Exchange tried to enter the credit derivatives business, turning to the Isda and Markit to obtain necessary licenses for data and index benchmarks. Continue reading

Banking Scandals

Recollecting some of the scandals in the Investment banking space from the   The Barclays Saga and Libor , LIBOR imagesManipulation : ny thing for you Big Boyz , JP Morgan : Jamie Dimon Testimony and the series is endless ..I believe the quotes of the maverick author holds true :

  • The main difference between government bailouts and smoking is that in some rare cases the statement “This is my last cigarette “holds true
  • The difference between banks and Mafia: banks have better legal regulatory expertise,but Mafia understands the public opinion. Or you can say”Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world”  Continue reading
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