Chapter 711 Responsibility

What happens next is not complicated.

Peter established a short futures position when the international gold price reached 1,185 US dollars per ounce, and prepared to start adding positions as the price rose.

At the beginning, as he expected, the international gold price began to rise slowly from 1,185 US dollars per ounce, and Peter also lowered his position and raised it to 50 million euros...

Calculated with 10 times leverage, the assets he controls reach 500 million euros.

Although there was a slight loss overall at this time, he was not panicked. Instead, he was excited because the gold price trend at this time was completely in line with his expectations.

When the international gold price hit US$1,200 per ounce, Peter's investment had already reached 200 million euros.

He knows that when the gold price reaches the current integer level, it will inevitably adjust. At this time, the long and short sides are about to face a fierce showdown.

The development of things did not deviate from his expectations. In the next two days, the international gold price fell back to the price of 1,180 US dollars. From the curve, the competition between the two sides was still very fierce. This period was obviously much higher than usual. It can be seen from the trading volume.

At this time, the previous losses in the investment accounts previously controlled by Peter were about to be wiped out.

He knew that if the international gold price continued to fall, he would make a profit.

And precisely at this time, the international gold price began to fluctuate slightly around US$1,180... According to Peter's prediction, this time the correction of the international gold price will hit the previous gap of US$1,050, and it seems that at this time, gold will The bulls in futures are very strong and are still prepared to hold on even if they are attacked by the bears.

But Peter, who is experienced, understands that many times these are just appearances. Many times, the main force in the market is playing with the psychology of other retail investors.

Why is it so difficult for retail investors and even small and medium-sized investors to make money during many big cycles of rising prices?

This is because the trend is not a gentle rise in the middle. The many declines in the price trend of this cycle seem to be just a small wave, but in the chart at that time, they were a cliff-like decline.

After so many waves, many unsteady small and medium-sized investors or institutions often misjudged the situation and were shaken out.

"Haha, I have seen through your sinister intentions..."

Pete had such a mentality at the time. He knew that what seemed like a close match at the current price of $1,180 would change the situation immediately and usher in a wave of decline.

Although Peter's position in gold futures at this time is close to his authority to use funds, it is not that they have not used some "little tricks" to avoid risk control before this - as long as they can finally get rich Income, no one cares about these...

Therefore, in a high mood, Pete began to reduce the margin ratio, which is equivalent to increasing the leverage ratio.

But the next development of things was slightly beyond Peter's expectation. He did not see a sharp drop in the price of gold. Instead, the international gold price rebounded slightly and was close to the price of US$1,200 again.

"Are you going to use another script? But no matter how you perform it, the final result will be the same. I won't be afraid of you."

This was Pete's inner thought at the time.

However, as the price rose, due to the increased leverage, the losses in his account had doubled compared to before. It seemed that some "small actions" had to be taken...

…

"That's it. Through his position, he opened multiple false accounts to hide the true situation of the entire investment and avoid risk control supervision..."

After hearing the report from his men, Benjamin Rothschild asked in disbelief:

"Impossible! Then how did he have the ability to obtain such a large amount of funds?"

"He... made up a fictitious contract to obtain the right to use part of the funds in the name of providing customers with a high proportion of capital allocation, and the so-called customer was actually his virtual account..."

"F**K! Is this the regulatory system we are proud of?!"

Benjamin Rothschild was furious.

"Actually, under normal circumstances, what he did would be discovered, but..."

Benjamin’s men hesitated for a moment and said:

"We happened to have recently acquired several related companies and added some related businesses, so the transition in this area is a little confusing..."

"Can you be sure that these are his personal actions?"

The subordinate understood what Benjamin meant, he nodded and said:

"We conducted a detailed interrogation and used that drug... and compared what he told us with his operating records, it was completely consistent. There was no sign of other forces participating in this process... "

"Try to resolve this matter as low-key as possible..."

After hearing Benjamin Rothschild's instructions, his subordinates glanced at him and asked:

"So Pete...is the trader who got into trouble, he...?"

"He is no longer of use. Leave it to the police, but ask them to keep the investigation confidential for the time being."

In order to prepare for the worst, they cannot deal with Peter... Just like the Societe Generale at that time, when it was absolutely necessary, they still had to disclose the whole process, which required the participation of the government. Therefore, although they didn't want to, they still had to hand the other party over to the police for investigation.

Taking a deep breath, Benjamin Rothschild asked coldly:

"How much is the current loss?"

"At least 3.5 billion euros in direct losses... But if some of these losses are transferred to the funds we manage, the losses attributed to our proprietary business will be greatly reduced..."

His subordinates said in a deep voice:

"But in this case, the performance of our fund management business this year will not look good..."

"But it's better than bearing the losses ourselves, isn't it? After all, no one can guarantee whether it will get better after the crisis..."

"I understand, Mr. President."

In fact, there was no other way for Benjamin Rothschild to do this, although his father was the founder of NM Rothschild Bank, and he now manages one of the core businesses of the LCR Rothschild Group.

But after all, it is still not his turn to call the shots in the entire Rothschild family, and he still needs to face many challenges in the competition for the family heir.

And now this incident, even if it is an "accident", has exposed the huge loopholes in the risk control system of NM Rothschild Bank, and this responsibility needs to be borne by him.