Thursday, July 01, 2010

How a broker spent $520m in a drunken stupor and moved the global oil price - Telegraph

This happened last year but details are just being made known now.

How a broker spent $520m in a drunken stupor and moved the global oil price - Telegraph: "The 34-year old broker at first claimed he had spent the night trading alongside a client. But the story began to fall apart when he refused to put the customer in touch with his desk for official approval of the trades.

By 10am it emerged that Mr Perkins had single-handedly moved the global price of oil to an eight-month high during a 'drunken blackout'. Prices leapt by more than $1.50 a barrel in under half an hour at around 2am....Ten times the usual volume of futures contracts changed hands in just one hour.
By the time PVM realised the trades were not authorised and swiftly began to unwind the positions, losses of exactly $9,763,252 had stacked up.

The amount was almost equal to PVM Oil Futures' entire annual revenue of $12m"
H/T to BionicTurtle.

2 comments:

Charles said...

The most amazing thing is that he immediately got hired by some commodity brokerage house in Switzerland!

BeaconDOM said...

Being able to put "single-handedly moved the global price of oil to an eight-month high " probably looked good on his resume...