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January 28, 2008


The Position Was Unwound Over Three Days in a Controlled Fashion

Here’s a look at the Eurostoxx 50 futures, which apparently made up the biggest part of Monsieur Kerviel’s $73 billion position, during the three days of unwinding. This 30-minute candlevolume chart is good for showing blasts of volume. See those three massive down bars on Monday, the 21st? I’m guessing they’re probably the handiwork of the bald and perspiring young men at SocGen trying to cut Kerviel’s already massive losses that terrible morning. There’s no graceful way to exit $73 billion of anything quickly.

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