tag:blogger.com,1999:blog-5465015914589377788.post2642065187144757936..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Rogue Trader in FranceMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5465015914589377788.post-16648356653978785162020-10-24T14:28:21.341-04:002020-10-24T14:28:21.341-04:00The above comment was in response to the following...The above comment was in response to the following question from Big Cajun Man:<br /><br />But who ends up paying for this? I don't have $7B hanging around, so who is on the hook for all of these losses? Are the trades nullified? Is an insurance oompany going down because of it?Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-80377494955270029532008-01-26T16:40:00.000-05:002008-01-26T16:40:00.000-05:00Big Cajun Man: The bank lost the money. The bank ...Big Cajun Man: <BR/><BR/>The bank lost the money. The bank is big enough that it can absorb this loss without going under. The trades weren't nullified; the bank just sold off the positions. This means that the bank sold the futures for less than the rogue trader originally paid for them.<BR/><BR/>Ultimately it is the bank's shareholders who lose money. The bank's profits for the year are $7 billion lower than expected.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.com