The “Squirrel” faces audit after rogue traders lose $800 million

The French government is to take sanctions against one of the country’s biggest savings banks, the Caisse d’Epargne (known as The Squirrel), after it suffered a $800 million loss on unauthorised equity derivatives trading.

The finance minister, Christine Lagarde, yesterday ordered an emergency audit of all French banks after the Caisse indicated that a team of four or five traders had exceeded their limits.

They were caught out in the panic surrounding last week’s stock market crash by what the bank called “routine control procedures”. The positions were immediately closed, the Caisse said. The traders had been disciplined.

Lagarde said she was “particularly frustrated and depressed” by this latest incident of unauthorised trading to hit French banks as the country’s banking commission began an investigation into the incident…

It is understood that an assistant of the rogue traders’ team leader has been dismissed. Others have been moved to different jobs.

Oh, the horror. The pain and embarrassment. Will they ever learn?

One thought on “The “Squirrel” faces audit after rogue traders lose $800 million

  1. Cinaedh says:

    There was a time not long ago when I could care less if a bank stupidly lost $800 million. Now I have to worry if they do, it’s going to come out of my pocket, while the bankers get chauffeured to their yachts in a Rolls Royce.

    I still believe in free enterprise and capitalism. In fact, I still think we should try it, one of these days.

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