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Group of eleven lenders say unauthorized trading may have caused $3.2-billion loss that sank energy trader SemGroup ...Read the full article
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Carl Baldin from Canada writes: I worked for this company for a while. They are part of the Carlyle Group (Bush Sr.) and have deep pockets. They were another one of these companies with management driven by greed and the want to make big plays = big bonuses.
Aaaaaah, the good old big bonus system! Traders have nothing to lose and these companies encourage it....this is exactly what happened with the 'sub-prime mess'! In that case, all the banker boys from NY stuffed their pockets while the tax payer pays!
Until this American style of business of rewarding executive/traders to go for the home run & big bonus is regulated or controlled...you will see more companies fall.
American style greed!!! The rich get richer!- Posted 23/07/08 at 3:31 PM EST | Alert an Editor | Link to Comment
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Howard Young from Canada writes: I don't think the taxpayer will be involved with this one. It's a privately held company so whoever financed this company is at risk. Hopefully, there are enough assets to cover the debt and this doesn't turn into an Enron scandal. I know oil prices are high, but to have the hootzpah to have a net short position on oil via the futures market. If they were going to speculate like this, at least they could have purchased options on futures to limit their downside risk to the actual cost to purchase the options and avoid the daily mark to market risk of futures trading.
- Posted 24/07/08 at 12:21 AM EST | Alert an Editor | Link to Comment
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