Professor Elam

Risk Magazine named Societe General  as a great risk manager. In the light of their $7.2 B loss maybe they want to reconsider.  If this can happen in a highly regulated institution like a bank, what could happen in an unregulated industry like hedge funds?  One never knows who is doing what and this is a great example. Read the article to get a feel how little SG knew and for how long.

Come to thnk of it, instead of scrambling to give us our own money back perhaps Bush Pelosi et all could explain how Citicorp with Robert Rubin more or less running the Exec Committee and Merrill Lynch could lose so much money, just what does the SEC do with those financial reports it gets?  Where is Sarbanes Oxley when you need it?  Did htose CEOs and CFOs sign off on the financial statements?  Did anything happen to them when the losses were 4x the original estimates? Just wondering…..