1. Peter Gumble, European editor for Fortune magazine, comments, "Kerviel is a stunning example of a trader breaking the rules, but he's by no means alone. One of the dirty little secrets of trading floors around the world is that every so often, somebody is caught concealing a position and is quickly - and quietly - dismissed... [This] might be shocking for people unfamiliar with the macho, high-risk, high-reward culture of most trading floors, but consider this: the only way banks can tell who will turn into a good trader and who even the most junior traders to take aggressive positions. This leeway is supposed to be matched by careful controls, but clearly they aren't foolproof." What is your reaction to this statement by Mr. Gumble?
Ans. My reaction to this statement is that it is true that somebody is caught concealing a position and is quickly - and quietly - dismissed. This means that nowadays some people can easily get the position they want on a company and can also dismiss themselves immediately as they pleased to.
2. What explanation can there be for the failure of SocGen's internal control system to detect Kerviel's transactions while Eurex detected many suspicious transactions?
Ans. The explanation of that is the SocGen is maybe too confident of what they have and it causes them to lower their guards. As what Pascal Decque, a financial analyst who covers for SocGen for Natixis (a leading player in corporate and investment banking), commented, "SocGen was brilliant in [its] achievement... the world leader in derivatives. Maybe when you are that good, you think you will never fail."
Whistle-Blower Divides IT Security Community
1. Do you think that Mike Lynn acted in a responsible manner? Why or Why not?
Ans. Yes, because Mike Lynn did it for the better of his jurisdiction.
2. Do you think that CISCO and ISS were right to pull the plug on Lynn's presentation at the black hat conference? Why and why not?
Ans. For me, it's no, because for some reasons that Mike Lynn only wants to express what he have found out or his discovery.
3. Outline a more reasonable approach toward communicating the flaw in the CIsco routers that would have led to the problem being promptly addressed without stirring up animosity among the parties involved.
Ans. The best reasonable approach for me is a direct communication to the other parties in which they can talk or express what they want to say in orderly manner without having vital confrontations.
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