SocGen hit by rogue trader losses

In 2007, a rogue trader at Societe Generale used an elaborate system to disguise massive market positions, leading to a €5 billion loss. The trader, identified as 31-year-old G Home, bypassed all control layers and did not trade for personal gain. The scandal was revealed through an email from the chairman, causing staff unrest and increased security. As the bank unwound high-risk positions, it faced additional losses due to plummeting markets and a €2 billion loss in the American housing market. The trader remains missing.

What was the primary method used by the rogue trader to conceal his activities?

• He operated during off-hours.

• He used fake identities.

• He set up an elaborate system.

• He bribed bank officials.

How did the staff at Societe Generale first learn about the trading scandal?

• Through a news report.

• Via a company-wide meeting.

• By word of mouth.

• From an email by the chairman.

What was the reaction of the staff upon learning about the scandal?

• They were confused.

• They were revolting.

• They were supportive.

• They were indifferent.

What additional financial loss did Societe Generale face apart from the rogue trading?

• Losses in the American housing market.

• Losses in the European stock market.

• Losses in cryptocurrency investments.

• Losses in the Asian bond market.

What was the total financial impact on Societe Generale due to the rogue trader and other losses?

• €7 billion

• €5 billion

• €3 billion

• €10 billion