Psychological Profile of a Rogue Trader?

[William K]

UBS loss comes as expert warns banks 'creating a monster'

There were signals, he said, which indicated the individuals most likely to go rogue: "I would be looking at four scales [to predict rogue trading]. Firstly conformity, so how likely is somebody to break rules; secondly, emotion, as low-emotion people tend to worry less about implications [and can] hide things; thirdly, what we call 'project leader' or ego; and fourthly 'self-starting' or self esteem, which shifts depending on the environment. Those four scales show how likely somebody is to break rules, cover up and believe they can get away with it."

His comments were reiterated by other experts in the field. Professor Nigel Nicholson, of the London Business School, added: "[Traders] are low on those personality dimensions that involve control, order and doing things through disciplined achievement. They want to cut corners. They are robust people, in the sense that they will be insensitive and tough. There is a general weakness in traders that they don't talk a lot. Managers have to be quite proactive in understanding what is going on in the trader's mind, especially the slightly introverted and isolated ones – who might also be geographically isolated."

I would think audits and checks would do a better job of stopping rogue trading, but both Kweku Adoboli (UBS) and Jérôme Kerviel (Société Générale) are supposedly quiet introverts who are better at hiding things

 

[rav3n]

Have you ever met or worked with many traders? They're a breed unto themselves.

 

[FDG]

Eh, the article fails to mention that if you don't act like that you're very likely to get fired. They're complaining about qualities that those who employ traders seem to be actively looking for.

 

[rav3n]

I've seen plenty of traders burn out or retire young, exceedingly wealthy. They're flamboyant, vocal, ADHD risk-taking, addictive personalities. They're entertaining and fun to chat with. But I wouldn't trust very many of them. The ones I liked AND trusted, weren't the high flyers. I swear half these guys are coked up most of the time and know for fact, some of them are.

 

[CzeCze]

Traders are why coke is a work drug not a party drug. Shia LaBouef hung with traders to research his Wall Street role and he badically said THEY (not him the movie star) lived like rock stars.

 

[Giggly]

Hot $hot$.

If they had the gift of the gab they'd be salesmen instead.