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This reminds me of Brian Hunter [0] of Amaranth fame. He was on the wrong side of a huge (multi billion USD) long trade on Natural Gas. When faced with losing i

This reminds me of Brian Hunter [0] of Amaranth fame. He was on the wrong side of a huge (multi billion USD) long trade on Natural Gas. When faced with losing it all, he doubled down. Blew up Amaranth. $9B USD hedge fund blew up basically overnight. Margin calls, etc, etc. Disclaimer: I worked for the hedge fund at the time that bought Amaranth's holdings for pennies on the dollar. Was supposed to be a joint buyout with JP Morgan Chase, but Chase couldn't calculate the risk in time before closing and left us with all of the eggs in the basket. We ended up making a killing on the deal as we had the assets to weather the margin calls. I still can't believe anyone gave B.H. any money to trade with after that, but someone did... [0] https://en.wikipedia.org/wiki/Brian_Hunter_(trader) https://en.wikipedia.org/wiki/Brian_Hunter_(trader)

loa_in_ 6y ago
That man is one of a very small group according to this list: https://en.wikipedia.org/wiki/Category:Rogue_traders https://en.wikipedia.org/wiki/Category:Rogue_traders
- jjallen 6y ago
  Arguably he wasn't rogue, judging from John Arnold's account of the situation[0]. He just made way to big of a trade. Think his account is somewhere between 10-20 minutes in this video 0. https://www.youtube.com/watch?time_continue=68&v=G6zFBzadTw0&feature=emb_logo https://www.youtube.com/watch?time_continue=68&v=G6zFBzadTw0...
MR4D 6y ago
One thing is clear to me - somebody is getting fired this week. Not sure if it's a hedge fund or producer, or a trader or a team, but someone is getting fired.
- baggy_trough 6y ago
  Everyone is getting fired.
  - MR4D 6y ago
    Not likely. This could actually be one person/team who was out of balance on their book. Back in 2008 when oil hit $150, it was due to a single trader. Needless to say, everyone in the industry was pissed at him afterwards.
    - baggy_trough 6y ago
      Everyone in the economy is getting fired.
divbzero 6y ago
I recall Amaranth was recruiting on campus that week, and cancelled all interviews the very next week.

loa_in_ 6y ago

That man is one of a very small group according to this list: https://en.wikipedia.org/wiki/Category:Rogue_traders https://en.wikipedia.org/wiki/Category:Rogue_traders

jjallen 6y ago
Arguably he wasn't rogue, judging from John Arnold's account of the situation[0]. He just made way to big of a trade. Think his account is somewhere between 10-20 minutes in this video 0. https://www.youtube.com/watch?time_continue=68&v=G6zFBzadTw0&feature=emb_logo https://www.youtube.com/watch?time_continue=68&v=G6zFBzadTw0...

MR4D 6y ago

One thing is clear to me - somebody is getting fired this week. Not sure if it's a hedge fund or producer, or a trader or a team, but someone is getting fired.

baggy_trough 6y ago
Everyone is getting fired.
- MR4D 6y ago
  Not likely. This could actually be one person/team who was out of balance on their book. Back in 2008 when oil hit $150, it was due to a single trader. Needless to say, everyone in the industry was pissed at him afterwards.
  - baggy_trough 6y ago
    Everyone in the economy is getting fired.

divbzero 6y ago

I recall Amaranth was recruiting on campus that week, and cancelled all interviews the very next week.