Chapter 3 Case Study

Questions to consider

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?Answer:
Trading has different fields and there a lot of right way to trade on a proper profit. if you are a trader you should focus on your own perspective and rely on your opinions than others for you to achieve the goals you want as a trader.

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?
Answer
When the heads of SocGen discovered this, they could not believe this one man had managed to do so much, so surreptitiously. A person familiar with SocGen's board says: " Everyone is stupefied to this affair.

Discussion Questions

1. Do you think that Mike Lynn acted in a responsible manner? Why or why not?
Answer 
for me Yes, because as we all know that Mike Lynn want a pair and square on their jobs and it is not a responsible manner because he only decide for himself and not for others.

2. Do you think that Cisco and ISS were right to pull the plug on Lynn's presentation at the Black Hat conference? Why or why not?
Answer
they have to face the Issue about Mike Lynn because it is a disrespect for him as on my part they have to be true to other people and face the issues properly

3. Outline a more reasonable approach toward communicating the flaw in the Cisco routers that would have a led to the problem being promptly addressed without stiring up animosity among the parties involved.
Answer
 for me is when he Mike Lyn has created a discoverable network worm and for me i understand it as a virus, and that network worn can took control or gain access to the routers accross the Internet