The Platform revealed last Friday that the National bank of the Savings banks (CNCE) had wiped a loss of trading 600 million euros in its activity of management on own account. It appears today that, on the one hand, the level of the loss rises rather to 695 million euros, and that BNP Paribas and General society benefitted from the vexations of the Squirrel to gain several million euros.
During the week of October 6, traders took positions beyond the limits authorized while misant on a rebound of the markets whereas those crumbled One of the three traders implied bets on the rise of the market after the advertisement of the Paulson plan. Except that it is the reverse which occurs: in spite of a monetary cover to protect itself from a reversal of market, this one proves to be insufficient. The loss reaches initially 100 million, then 400 million because the trader “did not cut” its positions.
According to the site of Nouvel Obs, General society and BNP Paribas, specialists in the derivative products, then agree to play the counterparts and to take again the positions of the Squirrel, with the full price obviously. BNP Paribas admits to have resorted to “hedgées positions, i.e. covered positions where we could in no way of having a profit or a symmetrical loss with those of the Savings banks. We thus in fact at most gained 4 or 5 million euros of margin on this operation. ”
“The total liquidation of the wallet reveals a loss of 695 million euros at October 17 at the evening, a figure in the course of validation by the auditors. Were added to the 600 million initial estimates various associated costs, in particular the costs of cover”, explain the Savings banks.
Moreover, the CNCE should buckle 2008 in the red: in addition to the loss of market of 600 million euros, the Squirrel could depreciate its participations in Nexity and Natixis, whose courses are in freefall since the beginning of the year.( Finance Information City )
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