Wednesday, July 07, 2010

It's deja vu all over again!

We saw what Nick Leeson did to Barings Bank. We have also seen how a Japanese brokerage house was brought to its knees by a single trade where the quantities and rates were mixed, in Japanese yen!

We now have the strange, bizarre case of Steve Perkins of PVM Oil Futures who bought 7m barrels of crude past midnight from a laptop at his home while in a drunken stupor. He accounted for 69% of all oil futures trades between midnight and 4 am on June 30, during which time, the oil prices rose by $1.50 within a 30-minute time span!

As Yogi Berra said, it's deja vu all over again!

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