Stock Market August 2009

[sunseeker]

There’s a strong rumour going around that a big player has lost a packet on the derivatives market.
Two names are being touted Societe Generale, and Barclays.
The money seems to be on Societe Generale at the moment.

ATB 

[onlooker]

Hi SS:

Don't hold back.     What are the possible consequences of such an event?

[sunseeker]

Hi Onlooker

Not an easy question to answer. Depending on what they’ve lost it on and whether it was on calls or puts. Which ever institution is involved it’s going to have far reaching repercussions. We are after all being told that the financial institutions have got there act together now. If true (and I have every reason to believe that it is. The person who informed me is too profesional for the story not to have substance) it’s surely going to have an adverse effect on all the financials for that reason alone.
 
The tax payers will of course be picking up the bill. 

ATB