![]() ![]() In January 2008, Jerome Kurviel, a trader at Société Générale in Paris lost $6.7 billion for his bank. At UBS this summer, 31-year-old Kweku Adoboli, a trader at the investment bank in London, lost $2.3 billion. Institutional Investor: Weve had two recent examples of lone traders managing to run up huge losses for their banks. ![]() The author of the recently published book Red-Blooded Risk: The Secret History of Wall Street, Brown recently spoke with Institutional Investor contributing writer Charles Wallace. Before that he was a professor of finance at Fordham and Yeshiva universities. ![]() He previously worked as a risk manager for Citigroup, JP Morgan, and Morgan Stanley. What causes big banks like UBS, which have sophisticated risk management systems, to be hit by rogue traders who can cause billions of dollars in losses?Īaron Brown is a well-regarded risk manager at AQR, a $37 billion hedge fund in Greenwich, Conn. ![]()
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