Wall St Does it AGAIN!

[Masada]

Given that you would define negligence based on the average performance of similar traders, I very much doubt it.

"Average performance"? This arose as a result of admitted incompetence, which is outside the ambit of "average" unless banks are in the habit of hiring fools. All of which shouldn't matter because that's what internal control procedures are meant to handle. This is also ignoring the fact that "average performance" has nothing to do with negligence. I could for instance have a perfect record and still screw up such to such an extent that (A) breach my duty of care and (C) cause them harm, the classic test for negligence.

 

[JollyRoger]

Citations please?

http://www.constitution.org/fed/federa10.htm

and

David R. Kamerschen, Ph.D.
Professor of Economics, University of Georgia

 

[Cutlass]

Citations please?

Last night's CBS evening news, for one. But any of many 1000s of news articles over the past couple of years for anyone who could be bothered to get news from places other than Republican press releases.

 

[History_Buff]

"Average performance"? This arose as a result of admitted incompetence, which is outside the ambit of "average" unless banks are in the habit of hiring fools. All of which shouldn't matter because that's what internal control procedures are meant to handle. This is also ignoring the fact that "average performance" has nothing to do with negligence. I could for instance have a perfect record and still screw up such to such an extent that (A) breach my duty of care and (C) cause them harm, the classic test for negligence.

Average performance does come into it. When discussing duty of care, that duty of care is essentially derived from the average performance of other professionals in the field.

Given that this sort of catastrophic investment failure has been all the rage for the past few years, I don't know that it would be easy to prove breach of duty of care. Them admitting it should not, in itself, be sufficient.

 

[Masada]

I'll reiterate, this didn't arise as a result of normal trading performance. Therefore the question of what the 'average' is under normal trading circumstances is immaterial.

 

[Monsterzuma]

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'

http://www.rollingstone.com/politic...et-al-engaged-in-naked-short-selling-20120515

 

[History_Buff]

I'll reiterate, this didn't arise as a result of normal trading performance. Therefore the question of what the 'average' is under normal trading circumstances is immaterial.

Right, but how can we define normal trading practices?

My original post is supposed to be a humourous-sarcastic statement of the following: "[investment] banks are in the habit of hiring fools".