Skip to main content

Derivative again

When markets move lots of money is lost or made through the use of deriviatives. It does not surprise me that a number of large banks don't have a proper real time control on their derivatives situation. Technically this is actually more difficult than most banks are capable of.

I would be interested in finding out a bit more about Soc Gen's losses, but it strikes me that they simply don't have automatic reconciliation. That allows people to conceal losses by putting false entries into the system.

Automatic reconcilation has been available for many years, but still a lot of financial organisations don't have this sort of system. Soc Gen sounds like one of them.

Comments

Popular posts from this blog

Its the long genes that stop working

People who read my blog will be aware that I have for some time argued that most (if not all) diseases of aging are caused by cells not being able to produce enough of the right proteins. What happens is that certain genes stop functioning because of a metabolic imbalance. I was, however, mystified as to why it was always particular genes that stopped working. Recently, however, there have been three papers produced: Aging is associated with a systemic length-associated transcriptome imbalance Age- or lifestyle-induced accumulation of genotoxicity is associated with a generalized shutdown of long gene transcription and Gene Size Matters: An Analysis of Gene Length in the Human Genome From these it is obvious to see that the genes that stop working are the longer ones. To me it is therefore obvious that if there is a shortage of nuclear Acetyl-CoA then it would mean that the probability of longer Genes being transcribed would be reduced to a greater extent than shorter ones.