.
.--.
Print this
:.--:
The history of the derivatives market has been generously larded with trading disasters. Here's five years' worth of losses--and the lessons learned.


"Excerpts From
The Fall of UBS"

Why did Germany's largest bank agree to a merger with Swiss Bank Corp., a smaller rival? Dirk Schutz tells how Ramy Goldstein, the star equity derivatives trader, ran his own show, and how CEO Mathis Cabiallavetta rose to power on the strength of Goldstein's trades--and how this ultimately capsized the bank.
 

The Fall of UBS
"What Really Happened at UBS?
Did poor risk management controls at UBS's equity derivatives desk destroy one of the world's most powerful institutions? Ex-UBSers offer their version of events.
"A View From Inside GED"
Former employees in Ramy Goldstein's global equity derivatives group had their own perspective on how risk management functioned inside their department.
"How UBS Lost $680 Million"
The sorry tale of the Swiss bank's deal with LTCM that went sour.
"Ramy Goldstein's Early Misadventures"
Previously unpublished documents show that the star equity derivatives trader had speculated poorly and lost investors' money before joining UBS.
"The UBS Files, Part II"
A former UBS employee's version of events.
"LTCM Speaks"
In a series of secretive roadshows, LTCM partners admitted that they badly misjudged market dynamics and volatility, making common risk management mistakes on a grand scale. This article chronicles how the best minds in the financial world got it so wrong.
Hedge Fund Nightmare
"The World According to Frank Partnoy"
The former derivatives dealer wrote the first tell-all business best-seller. "I sold to cheaters, not widows and orphans. That was the moral high ground if there was a moral high ground in derivatives. I sold to cheaters."

"Victor Niederhoffer's Garage Sale"
After interviewing him in our June 1997 issue, and reporting on his spectacular $130 million October 1997 blowup, we displayed the silver collection he sold to mount his return to Wall Street.

"Oops!"
A letter from former P&G chairman E.L. Artzt reveals how not to practice risk management.
"The Two Faces of Kevin Hudson"
How Bankers Trust sold swaps to P&G in 1993-94 and how those swaps devastated the maverick bank.
The Stolen Risk Manual
Plus
"F.I.A.S.C.O.: An Excerpt"
"The Rise and Fall of Victor Niederhoffer"
"The Vol Pusher"
"The Public Lynching of Thomas Zimmerman"
"Who Blew Up Phoenix?"
"The Woes of Martin Armstrong"
--