When SocGen sold the European futures that precipitated the Fed cutting intra-meeting, marking the bottom in those equities; SocGen said it was the result of a "rogue" trader. Now that UBS has written off $34 billion, look what they had to say...
UBS on Monday revealed that its massive losses in securities related to US residential mortgages stemmed largely from the fact that three separate parts of the group had amassed large positions, without sounding the Swiss bank’s once-vaunted alarm bells for risk.
In a report to shareholders two days ahead of its annual meeting, the biggest European casualty of the subprime crisis explains how its elaborate risk detection procedures failed to detect that UBS had built up more than $70bn in potentially dangerous positions.
So elaborate risk detection means they can't detect $70 billion? Boy is that rich!
Post a Comment