Friday, December 09, 2005

Think You're Having a Bad Day?

How'd you like to be the guy responsible for costing his company their entire profits for the fiscal year?

In a story reported today, Japanese firm Mizuho Securities lost 27 billion yen due to a typing error by one of its traders. That's about 224 million US dollars.

It actually could have been a lot worse, but market laws preventing extremely volatile price fluctuations saved the company from losing even more money due to the blunder.

Obviously this raises questions about the trading system, which almost certainly should have thrown up red flags all over the place when the trader attempted to offer 610,000 shares, valued at $3.1 billion, for 1 yen apiece (1 yen is about .0083 US dollars). But how would you like to be the guy who pushed "Submit" on that one?

3 comments:

LastBestAngryMan said...

I think that's absolutely fabulous, personally. Does he have to commit ritual suicide now?

karri said...

All I have to say is: aaaaaaaaaauuuuuuuggggghhhhhhh....
(spelling approximated.)
(Rough translation = "yikesOMGsuckstobehim")

So, that said, I second lastbestangryman's question: Will he now have to commit ritual suicide? Or instead of the sword, will he just be getting the ritual axe?

chornbe said...

That's even worse than my and Mark's "with gusto" incident.