It is hard to imagine how any operation can lose 7.2 billion dollars especially the way Societe Gererale did with such a extended trade clock. This was a trade in the making and with any risk management system review process, one would think any seasoned manager would pick up on the problem. But given the nature of the real talent at most financial institution's trading operations, anything is possible. Transacting many times is confused with trading. Quality trading operations are great risk designers, able to blend multiple elements of various trading strategies to capture opportunities is rough as well as smooth markets. The best known in the hedge community have been passing transactions off as trading and have been left with large positions without benefit of trading programs with superior trading risk features.
Markets will try to continue to distance themselves from the lows. Sp500 futures test of 1340 will be first opportunity for the bears who are hoping this recovery slows quickly.
