Lewis Charles, the firm that employed Jonathan Bunn, a rogue trader, until about a month ago, is now blaming all of the firms subsequent woes on him.In brief they say one man, Jonathan (the guy who we wrote was the best worst rogue trader ever about about a month ago), is responsible for everything that’s gone wrong at the company since he shorted HSBC at exactly the wrong time (see chart).
It may or may not be ridiculous for them to do so. You decide.
To get Jonathan jailed for three years, and (presumably) to absolve the company of the troubles it’s faced since, the prosecution working for Lewis Charles told the court, according to the Telegraph:
The bad publicity surrounding the case and subsequent loss of profits led to 12 staff being made redundant and a 20% pay cut for other employees.
In other words, Lewis Charles has taken on the role of a mean teacher who punishes the class for the maldeeds of one student and then told the class that it is actually
The reality is, Jonathan did lie about a few things:
- hedging the HSBC position
- the trade slips being real and from real clients
- not being home when his bosses came looking for him
But we think this treatment from Lewis Charles in the courtroom is harsh.
The firm estimates the losses resulted in their losing £2.6 million and they’ve calculated another £322,000 in “associated costs” which also can apparently be attributed to Jonathan.
Except we remember back when this happened that Lewis Charles told the Times that they had insurance to cover those losses. So that’s weird.
And now Lewis Charles, who might have had our sympathy for employing a trader who loses the firm millions and apologizes via a text that says, “I’m sorry and I realise how serious this is,” has lost it and now we side with Jonathan.
Laid off employees, your job loss may or may not be Jonathan’s fault, but blame no one or blame the company that is now trying to pin everything on one guy who doesn’t even come close to Jerome Kerviel.
Now read what Kerviel and real rogue traders did to land them on the list of the worst trades of all time >>