Place Your Bets.

Apparently comparisons can be made between the rogue trader, Jerome Kerviel and Kurtz from Heart of Darkness, according to an interesting article at marketpsych.com.

It also demonstrates the similarities between "rogue" traders and trading geniuses. If the only difference between the crazies and the geniuses is success, then our view of success at least in the professions of chance is flawed. Using the often fallacious proof by abduction we interpret success that could have been random as the result of skill.

My point is, Jerome Kerviel may make a fantastic story and skapegoat, the root problem is how we view and reward success(and therefore incentivise behaivour) in environments such as the markets.

This post borrows heavily from Taleb's Fooled by Randomness- a very good book.