WASHINGTON (MarketWatch) -- The Federal Reserve was not aware that Societe Generale was unwinding trades in Europe on Monday that had been amassed by a rogue trader at the French bank, a Fed source said Thursday.
The bank's scramble to get out of those trades is now presumed to be a factor behind the panic sell-offs that roiled overseas markets on Monday. And those sharp declines in Europe and Asia were cited by Fed watchers as a central concern that moved the Fed to engineer an unprecedented emergency rate cut only one week before their formal meeting.
More Coveragee by Bigpicture
Thursday, January 24, 2008
Bernanke didn't know about SocGen's loss when it slashed rates - MarketWatch
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment