About Rogue Traders
Beginning in the 1980’s, it was not uncommon to find that a freshly-hired trainee—a kid literally right out of college—knew more about the new financial instruments than the CEO of the firm that hired him. In some instances, the kids were learning about the finer points of newly-invented instruments before their managers knew they even existed. These were the new breed of traders scattered across the trading desks.
The individuals whose stories compose the contents of this book are some of the smartest people you’ll ever read about. They had an intimate understanding of the markets and how best to make money from them, but they also had an equally in-depth knowledge of some of the flaws in the markets. Or sometimes, flaws in the systems at the banks themselves. They used their knowledge to make money. And when that failed, they often used their knowledge of how they system was structured to hide their losses. And when that failed, there was no turning back.
“Skyrm makes complex financial scenarios accessible to all interested readers in an informative and entertaining manner…” —Thomas Peterffy, Chairman, CEO, and President of Interactive Brokers
David Heuwetter and Drysdale, 1982
Howard Rubin and Merrill Lynch, 1987
Joe Jett and Kidder Peabody, 1994
Nick Leeson and Baring Brothers, 1995
Brian Hunter and Amaranth, 2006
Jérôme Kerviel and Société Générale, 2008
Thomas Hayes, RBS, UBS, and Citigroup, 2009
- Westfaironline – May 31, 2014
- New Canaan News Online – June 9, 2014
- The Hamlethub – June 18, 2014
- The Stamford Advocate – June 25, 2014
- Financial Advisor – June 30, 2014
About The Money Noose- Jon Corzine and the Collapse of MF Global
“MF Global had the wrong business model and the wrong people, at the precisely the wrong time in the market. We did not deal with our central problem of unprofitable core business operations and out-of-control overheads, choosing instead to embark on a difficult path of recreating an investment banking business into what is widely recognized as historically one of the most challenging times in financial markets’ history.” —senior member of the MF Fixed Income management team.
THE MONEY NOOSE is a general accounting of the facts that led to MF Global’s collapse, as well as the story of the major players involved. It is a chaotic story, one in which individual actions taken in and of themselves are relatively minor. But the sum of those individual actions equal the same end result.
How, then, can investors protect themselves from this outcome? The best answer is education. Investors need to be fully aware of what is involved in the investment process, and that includes an understanding of seg funds. It is, after all, their money. This book is designed to tell the story of MF Global, what went wrong and how things came to an abrupt end. In those regards, it’s an incredible story.
Scott E.D. Skyrm is one of the leading figures in the repo and securities finance markets today, and regularly quoted in The Wall Street Journal, The Financial Times, Bloomberg News Service, Reuters, Market News, and Dow Jones.
He is a highly regarded as a former salesman, trader, trading desk manager, and global business head in fixed-income, securities finance, and securities clearing and settlement. He recently left Newedge, where he was their “Global Head of Repo, Money Markets, and Fixed Income Clearing.”
He now is writing commentaries on the repo market, the short-end of the Treasury market, Federal Reserve policy and general Wall Street topics. He has worked on Wall Street for over 22 years and has taken billion dollar risks on the trading floor, managed a multi-billion dollar balance sheet, and consistently ran one of the most profitable trading groups at every firm where he worked.
Prior to Newedge, he managed the repo desk at ING Barings, worked summers at Shearson
Lehman/American Express and started his full-time career at The Bank of Tokyo.