Rogue Traders- billion-dollar mistakes

Today’s concern is about the growing scale of financial irregularities.

The number of financial disasters is rising with the complexity of the world financial and banking system.

The latest addition to the culture of greed is the headline story that shook the confidence-Swiss bank UBS hit by fruit fool!

It has simply become an activity of rinse,wash and repeat.

No action or no solution or no system is in place to plug the future leaks in the system.Public money has been pushed by the rogue traders into the drains.

Checks and balances are not in place.

Business ethics and the issue of corporate governances are thrown into the dust.

One such alarming issue is RT.

That is rogue trading in stocks and futures market.

These traders are experts in mastering the art of catapulting the trades in the world of derivatives.

There have been sparked cries from the public for tighter regulation of derivative trades.

The regulators could not fix up the loopholes in the system.

One cannot take shelter under the innocent argument of oversight of the system of corporate   governance.

Rogue traders   emerge and reemerge from time to time with different styles in the financial industry.

I don’t know why global financial reforms haven’t stopped rogue traders?

The tagline is rogue traders will risk everything to beat the system to the pulp.

I don’t have any plain vanilla answer to what makes a bank trader go rogue?

No second opinion on Rogue traders’ super genius ability to reroute the accounting ledgers.

On Rogue traders many movies have been made and books are written about their non linear  qualities of thinking and misusing the understanding of the complex financial instruments and system.

The list of “The World’s Most Infamous Rogue Traders is endless. The control management of Rogue Trading needs better prevention and ‘Risk Controls’ in the system.

I still recollect how in the Bette Davis movie, Mr. Skeffington, one of the characters is a rogue

Bond trader who made $24,000 in commissions placing fake bond orders a lot of money in1944.

Then will you agree with the point of view that when it comes to finances linear thinking will put you on the path of pitfalls when you are asked to design a practical budget of rapid or fast growth for next years by your ever demanding senior management.

Psychologically you need change in your perception and out of box thinking.

Here learned psychologists will agree with me.

The bottom line is, history has taught us that tomorrows’ finance market may not look like todays.

Therefore it has become a billion dollar question to answer that Where is your next Rogue Trader hiding.

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