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timely lesson for all ...

  1. rembrandt

    5,816 Posts.

    Hmmm... just reading about the sentencing of rogue trader John Rusnak, 38, to 7.5 years in jail for currency fraud that led to $1.2billion in losses for Allfirst Financial.

    He was faced with up to a 30 year sentence which was reduced due to plea bargaining.

    He also must repay $1710/month for his 5 year probation period. In addition, any future income from books etc due to his infamous appeal is to be forfeited as restitution.

    "Prosecutors said he dug himself a deeper hole by taking ever-larger risks as he tried to recoup the money he had lost."

    We remember that Nick Leeson as the rogue trader who brought down Barings with his $2billion fraud got into the same situation.

    Derivatives traders have a reputation as 'heads' and the ego can prevent rationality at important points of decision.

    Lesson: Don't chase losses ... the journey from trader to gambler can be a fine line.

    Cheers ...

    This is only my view ... read the red stuff.

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