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Rogue Traders

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A rogue trader at London oil broker PVM Oil Futures has cost them $10m (£6m).

First, these traders make billions off the backs of consumers, keeping prices artificially high by sitting on oil (or any other product) until the price is right.

Second, one might argue that these futures investors are fraudulent themselves, since they never physically hold the product. PVM could not take a prospective buyer to a thousand barrels of oil and say ‘here’s what you’re buying’. It’s all done on paper.

And finally, they lose $10m and there is no suggestion of financial difficulty, never mind bankruptcy. How many real businesses that actually produce something besides profits have $10m to lose, never mind stand the loss!

That’s what I want to be when [if]I grow up!

Written by Smiling Carcass

04/07/2009 at 10:16 AM

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