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ChuangTzu
starvingphysicist




Registered: 09/04/02
Posts: 3,060
Last seen: 10 years, 3 months
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In case you think you have it bad...
#9061391 - 10/11/08 12:07 AM (15 years, 3 months ago) |
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...at least you're not this guy:
"One famous rogue trader is Nick Leeson, whose losses were sufficient to bankrupt Barings Bank in 1995 following his ill-advised and unauthorized investments in index futures. Through a combination of poor judgement on his part, lack of oversight by management, a naive regulatory environment and unfortunate outside events like the Kobe earthquake, Leeson incurred a $1.3 billion loss that bankrupted the centuries-old financial institution."
"The beginning of the end occurred on January 16, 1995, when Leeson placed a short straddle in the Stock Exchange of Singapore and Tokyo stock exchanges, essentially betting that the Japanese stock market would not move significantly overnight. However, the Kobe earthquake hit early in the morning on January 17, sending Asian markets, and Leeson's investments, into a tailspin. Leeson attempted to recoup his losses by making a series of increasingly risky new investments, this time betting that the Nikkei Stock Average would make a rapid recovery. But the recovery failed to materialize, and he succeeded only in digging a deeper hole.
Realising the gravity of the situation, Leeson left a note reading "I'm Sorry" and fled on February 23. Losses eventually reached £827 million (US$1.4 billion), twice the bank's available trading capital. After a failed bailout attempt, Barings was declared insolvent on February 26."
$1.4 billion...
Bankrupted the oldest bank in England--the bank that financed the Lousiana Purchase...
If you still don't feel better, check out: http://en.wikipedia.org/wiki/List_of_trading_losses
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geokills
∙∙∙∙☼ º¿° ☼∙∙∙∙


Registered: 05/08/01
Posts: 23,417
Loc: city of angels
Last seen: 5 hours, 36 minutes
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Re: In case you think you have it bad... [Re: ChuangTzu]
#9061926 - 10/11/08 03:36 AM (15 years, 3 months ago) |
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You're right, it could always be worse... But, it could also always be better!
--------------------
-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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0xYg3n
topdawg


Registered: 04/29/04
Posts: 18,881
Last seen: 14 years, 10 months
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Re: In case you think you have it bad... [Re: ChuangTzu]
#9061961 - 10/11/08 04:16 AM (15 years, 3 months ago) |
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Man, I'm glad I'm not that guy.
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Asante
Mage


Registered: 02/06/02
Posts: 86,795
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Re: In case you think you have it bad... [Re: ChuangTzu]
#9062316 - 10/11/08 08:53 AM (15 years, 3 months ago) |
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Suppose it was his money to begin with..
If he had put 10-20% in gold like many advise, the 1.4G loss would have been disastrous, but not the end of the world as he upon losing it all still had several 100 million hedged in gold.
Old Wallstreet saying:
"Put 10% in gold and hope it doesnt work"
-------------------- Omnicyclion.org higher knowledge starts here
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0xYg3n
topdawg


Registered: 04/29/04
Posts: 18,881
Last seen: 14 years, 10 months
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Re: In case you think you have it bad... [Re: Asante]
#9062717 - 10/11/08 11:29 AM (15 years, 3 months ago) |
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Would you ever wear golden shoes?
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Cowgold
Bullshit


Registered: 04/04/05
Posts: 12,486
Loc: .
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Re: In case you think you have it bad... [Re: Asante]
#9064375 - 10/11/08 07:01 PM (15 years, 3 months ago) |
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They only had 700 mil in trading capitol. The several hundred mil in gold still wouldn't have covered the losses.
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Baeosistine
ڜڭۑۄڴڡڟژۻۼئٹ



Registered: 12/23/07
Posts: 902
Loc: England
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Re: In case you think you have it bad... [Re: Asante]
#9065593 - 10/12/08 03:03 AM (15 years, 3 months ago) |
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Quote:
Wiccan_Seeker said: Suppose it was his money to begin with..
If he had put 10-20% in gold like many advise, the 1.4G loss would have been disastrous, but not the end of the world as he upon losing it all still had several 100 million hedged in gold.
...which he would have then used to buy more derivatives to try and recoup his losses!
-------------------- jesus
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