Chapter 711 Responsibility
What happens next is not complicated.
Pete established a short futures position when the international gold price reached 1,185 US dollars per ounce, and prepared to start adding positions as the price rose.
At the beginning, as he expected, the international gold price began to rise slowly from 1,185 US dollars per ounce, and Peter also reduced his position and raised it to 50 million euros...
With 10 Calculated by times leverage, the assets he controls reach 500 million euros.
Although there was a slight loss overall at this time, he did not panic. Instead, he was excited because the gold price trend at this time was completely in line with his expectations.
When the international gold price hit US$1,200 per ounce, Peter's investment had already reached 200 million euros.
He knows that when the gold price reaches the current integer level, it will inevitably make adjustments. At this time, the long and short parties are about to face a fierce showdown.
The development of the matter did not deviate from his expectations. In the next two days, the international gold price fell back to the price of 1,180 US dollars, and judging from the curve, the competition between the two sides was still very fierce. This can be seen from the usually much higher trading volume.
At this time, the previous losses in the investment account previously controlled by Peter were about to be wiped out.
He knew that if the international gold price continued to fall, he would make a profit.
At exactly this time, the international gold price began to fluctuate slightly around US$1,180... According to Peter's prediction, this time the correction of the international gold price will hit the previous gap of US$1,050, and It seems that the bulls in gold futures are very strong at this time and are still prepared to not give in even if they face attacks from the shorts.
But Pete, who is experienced, understands that many times these are just appearances. Many times, the main force in the market is playing with the psychology of other retail investors.
Why is it so difficult for retail investors and even small and medium-sized investors to make money during many big cycles of rising prices?
This is because the trend is not smooth in the middle of the rise. Many declines seem to be just small waves in the price trend of this cycle, but in the chart at that time it was It's a cliff-like drop.
After so many waves, many unsteady small and medium-sized investors or institutions often misjudged the situation and were shaken out.
"Haha, I have seen through your sinister intentions..."
That was Peter's mentality at the time. He knew that it was likely that they would look evenly matched at the current price of $1,180. The duel will immediately change the situation in the next moment and usher in a wave of decline.
Although Peter's position in gold futures at this time is close to his authority to use funds, it is not that they have not used some "little tricks" to avoid risk control before this - —As long as he can get huge profits in the end, no one cares about this...
So in a high mood, Pete began to reduce the margin ratio, which is equivalent to increasing the leverage ratio.
But the next development of things was slightly beyond Peter's expectation. He did not see a sharp drop in the price of gold. Instead, the international gold price rebounded slightly and was close to the price of US$1,200 again.
"Are you going to use another script? But no matter how you perform it, the final result will be the same. I won't be afraid of you."
This was Pete's inner thought at the time .
However, as the price rose, due to the increased leverage, the losses in his account had doubled than before. It seemed that some "small actions" had to be taken...
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"That's it. Through his position, he opened multiple false accounts to hide the true situation of the entire investment and avoid risk control supervision..."
Hearing the returns from his subordinates, Benjamin Rothschild De asked in disbelief:
"Impossible! Then how did he have the ability to obtain the right to use such large-scale funds? "Limited?" "He... created a fictitious contract to obtain the right to use part of the funds in the name of providing a high proportion of capital allocation to the client, and the so-called client was actually his virtual account..."
“F**K! Is this the regulatory system we are proud of?!”
Benjamin Rothschild was furious.
“In fact, under normal circumstances, what he did would be discovered, but...”
Benjamin’s men hesitated for a moment and said:
“Just in time we Recently, he has acquired several related companies and added some related businesses, so there is a little confusion in this transition..."
"Can you be sure that these are his personal actions?"
The subordinate understood what Benjamin meant. He nodded and said:
"We conducted a detailed interrogation and the use of that drug...and compared what he told us with his operation records. , is completely consistent. There is no sign of other forces participating in this process... ..."
"Resolve this matter as low-key as possible..."
Hearing Benjamin Rothschild's instructions, his subordinates glanced at him and asked:
"Then Pete...is the trader who got into trouble, he...?"
"He is no longer of use. Leave it to the police, but ask them to keep the investigation confidential for the time being."
In order to prepare for the worst, Peter cannot be handled by them... Just like at that time Societe Generale, as a last resort, still needs to disclose the entire process, which will require the participation of the government. Therefore, although they don't want to, they still need to hand the other party over to the police for investigation.
Taking a deep breath, Benjamin Rothschild asked coldly:
“How much are the current losses?”
“At least 3.5 billion euros. direct losses...but if some of these losses were transferred to funds we manage, the losses attributable to our proprietary operations would be significantly reduced..."
His subordinate said in a deep voice:
“But in this case, the performance of our fund management business this year will not be very good...”
“But it is better than having to bear the losses ourselves. , right? After all, no one can guarantee that things will get better after the crisis..."
"I understand, Mr. President"
In fact, the reason why Benjamin Rothschild. De has no choice but to do this, even though his father is the founder of NM Rothschild Bank, and he now manages one of the core businesses of LCR Rothschild Group.
But after all, the entire Rothschild family still hasn't had its turn yet, and he still has to face many challenges in the competition for family heirs.
The occurrence of this incident now, even if it is an "accident", has exposed a huge loophole in the risk control system of NM Rothschild Bank. This responsibility needs to be borne by him.
(End of this chapter)