Citi fined $78 million after a European trader's fat-finger trade caused a flash crash in stocks
https://www.businessinsider.com/citi-trader-fat-finger-flash-crash-trade-78-million-fine-2024-5
No wonder they have to keep laying off people.
9 replies (most recent on top)
It's NOT even a "Fat-finger Error" as the media has dubbed it. The Trader clearly intended to enter the correct number but in the WRONG BOX or FIELD because just like in the $900 Million Fvck Up with Revlon's Creditors, the software interface is NOT user friendly and was developed by Contractors/Vendors who have little to NO Fvcken idea how the actual work and processes are done, as well as how Humans/Workers interact with banking software and platforms. The Boxes, Fields and/or Font Sizes may have been too small or too similar for the Trader to distinguish especially since he was in a hurry to enter the trade before the markets move.
There are more untested , unregulated environment like this inside Citi. Citi works with more vendor consultants who just do what they are asked for. There is no diving into details while working.
"The $78 million fine from UK regulators is in addition to about $50 million Citigroup lost on the trade, bringing the total cost of the fat-finger trade to about $130 million." From OP's article.
Unbelievable. No wonder massive layoffs to help their bottom line. You know they knew they were going to be in a huge deficits.
Yup- it was poor controls alright- Citi will never change!
https://amp.theguardian.com/business/article/2024/may/22/citigroup-fined-over-fat-finger-error-mistaken-orders
Yet again, Citi has poor control environment- in this day and age, preventative controls should have stopped the realisation of the trade…
Pity it wasn’t more than 78million…
Did the managers who didn’t ensure controls were in place keep their jobs? Bet they did…
That is sort of stupid... we dont allow customers take out more money than they have. how could traders enter anything they want.. just doesnt make sense unless there some fraudulent activity..
Post ID: @bqd+1sEF3uQ7 Sometimes it could take regulators 1 to 5 years to complete their investigations. Regulators often have more than a few cases they investigate at any given time. Surely you've read about fines levied on Companies about Fvck Ups that happened 5+ years prior to the fines being levied.
Why the 2022 trade is coming now? What regulators were doing till now?
"While the trader meant to execute a trade that would create a basket of stocks valued at $58 million, they accidentally entered 58 million into the quantity field, ultimately creating a massive trade worth $444 billion." -Businessinsider.com
😲😳Wow! We'll never get out of regulatory issues. I know this is from 2022 and coming out now. I wonder what else is going to come to light?🤦♀️