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Strategies & Market Trends : Value Investing
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To: Madharry who wrote (44378)9/17/2011 2:21:12 AM
From: Spekulatius  Read Replies (2) of 78634
 
re UBS Adoboli / Societe General Kerviel case - did anyone notice that these rogue trading accidents always occur in bear markets and they always involve losses, but you never hear about a rogue trader in a bull market or one that makes unauthorized trades and earns huge amounts of money.

While there may be valid reasons for this - a rogue trader very likely is one that tries to cover up bad trades, so he increases position size, circumvents the safety mechanism etc. I still wonder why all the reported rogue traders are loosing and none of them was ever reported as winner.

Well my guess is that a winning rogue trader is not a rogue trader, he is "Da man" who has balls, follows his instincts and don't let himself slow down by bureaucracy and controllers. He get's promoted, makes gazillion of bucks and probably runs a proprietary trading department.

FWIW UBS investment banking had accumulated losses of 40B CHF in 2008 and 2009, made 2B CHF in 2010 and apparently lost it all in 2011. Moreover, the fallout from the trading accident this year creates incredible image damage to UBS wealth management division. If I ever seen a business that needs to be wind down or sold (even if it fetches only one Clownbuck) it's probably UBS investment bank.
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