Jerome Kerviel: P&L Picture
The real [official] P&L is the dashed line around 0, the futures P&L is the continuous line.
The report [link below] confirms that Mr. Kerviel was offered a 300k euros bonus. The interesting bit in the report is in french. Almost all counterparties used for the fake trades were SocGen related. A translation will be available in due course…
I am wondering why he should get a 300k bonus for a P&L officiel around 0.
Source: SocGen
Special Committee: Mission Green, SocGen
NOTE: Above link now in english, previous was partially in french.
February 21st, 2008 at 12:24 am
[...] Alea | Jerome Kerviel: P&L Picture chart of his P&L (tags: trading hedgefunds) [...]
February 21st, 2008 at 2:09 am
“I am wondering why he should get a 300k bonus for a P&L officiel around 0. ”
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Just wondering if it’s because of the scale. It will show to be around 0 even if it were a few millions.
February 21st, 2008 at 3:09 am
Wow that really is amazing that his “official” (fraudulent) P&L was so small compared to his actual P&L. Using internal groups as counterparties should have raised a flag given how standardized these contracts are because of ISDA.
February 21st, 2008 at 6:07 am
What they call “illustrations” (appendixes at the end of the report, especially 4, 5 and 6) are great material, genuinely “socio-technical”.
February 21st, 2008 at 6:21 am
aj:
It could be that the scale is misleading.
The profits from the “futures” trades were booked by SocGen and taxed accordingly.
February 21st, 2008 at 6:24 am
Prince of Wall Street :
the use of internal counterparties was very clever because they are considered “riskless.”
February 21st, 2008 at 6:24 am
stet:
agreed, somebody should write a book about this.
February 21st, 2008 at 12:22 pm
[...] The rogue trader’s real P&L illustrated. (Alea) [...]
February 21st, 2008 at 12:26 pm
jck: “somebody should write a book about this.”
Go for it
February 21st, 2008 at 12:35 pm
I am not a writer…ask Felix
February 21st, 2008 at 1:39 pm
wow, it’s terrific… Jerome gets the work but i’m sure a lot of people will be very, very better….
sorry for Jerome and for SG.
February 21st, 2008 at 1:49 pm
[...] Alea has found this amazing chart, showing Jerome Kerviel’s real P&L at SocGen (SCGLY.PK). [...]
February 21st, 2008 at 11:21 pm
[...] - Alea | Jerome Kerviel: P&L Picture The profit & loss graph of the French rogue trader (tags: rogue trader socgen) (0 votes, [...]