"Kerviel, Your Winning Position Risks Too Much"

From the previous article:



Kerviel had been investing the bank's money by hedging on European equity market indices. That means he made bets on how the markets would perform at a future date.

The trader had been betting throughout 2007 that markets would fall. ''He was therefore winning, virtually,''.

But the bank says he had overstepped his authority and was wagering more money than he should have.

So at the beginning of January, Bouton said, the trader voluntarily created losing positions, to neutralize his earlier gains and cover his tracks.

But markets dropped this month, and fast. ''This sad affair veered into a Greek tragedy: His virtual losing position became huge.'