Just two days ago I added a blog post "Whos' minding the store and where's my 401K funds" about monies lost by rogue traders.  At the time I ended my post by stating that "it sems the banks have learned nothing since 1995" and posed the question Have YOU?

Today, just 45 minutes ago in fact, the Associated Press Posted the following article: 

NEW YORK - A rogue trader at MF Global Ltd. rang up $141.5 million in losses on the broker's account this week, the company said Thursday, a black eye that cost the company almost a fifth of its market value.

The Bermuda-based broker said on Wednesday morning it discovered Evan Dooley, a trader at the company's Memphis, Tenn., branch, trading wheat contracts in amounts that exceeded how much he was allowed to trade.

MF Global fired Dooley and liquidated the wheat contracts, which led to a $141.5 million loss. An entry-order system that should have blocked the trades failed, the company said.  The story continues that "MF Global brokers options and futures contracts for 130,000 clients at 70 exchanges like the Chicago Mercantile Exchange, the Chicago Board of Trade and the New York Mercantile Exchange. The company said the trading loss does not threaten the $19.5 billion clients have in their accounts."

The SEC needs to step in DO SOMETHING ABOUT THIS.  If the trading companies are held accountable responsible and have to PAY BACK the monies that their rogue traders "lose" perhaps that will make them more vigilant during the ackground checks for employees.  I would also make them execute the checks and balances on their traders on a more timely basis. 

So far this year alone, we have the trader at Societe Generale who rang up more than $7 billion in losses on his company's account by placing unauthorized bets on European stock indexes and now this trader at MF Global Ltd. rang up $141.5 million in losses.  When is it going to stop? 

Here's the thing, when you lose while betting at the casino in Las Vegas, the casino has the money.   In this instance, someone has the money as well.   So I ask you again, do you know where your 401K and retirement funds are?  Do you know where the fund managers are investing those monies?  You'd better check right now.

You can read the rest of today's Associated Press story at http://www.msnbc.msn.com/id/23388778/ - I also recommend you read my blog post from February 27th below to get a full story regarding gambling traders.

Don't know if you heard the latest but... There's a new way to get your boarding pass and airport information.  American Airlines has made it easy to get the information you need for your travels regardless of where you are.  Those of you who talk on the phone in the bathroom know what I mean. 

Some of the features that got me excited are:

• Check in for your flight
• View your travel Itinerary
• Confirm your departure gate
• Flight Status and Schedules
• Delayed Baggage Status
• Destination Information: includes weather and airport information
• Admirals Club® Lounges: find locations, purchase one day passes and memberships
• Change your flights
• Book your car

All you have to do is simply type www.aa.com into your cell phone or other Web-enabled mobile device and get connected. I hear they will even scan the flight check-in barcode directly from your mobile phone!  Now how cool is that?  I love technology!

To learn more about this visit http://www.aa.com/index_us.jhtml

Well it happened again and personally I don’t know how a company can lose $7.2 Billion dollars through one employee.  Especially after what we all learned from the Bearings Bank debacle.  I guess of you live long enough you will see companies do really stupid things and not learn from mistakes.

Bearings, a 100 year old British bank, was brought down by rogue trader Nick Leeson.  In 1995 trader Nick made $1.38 billion in unauthorized trades that brought Bearings Bank to its knees.  The bank was ultimately purchased by a Dutch bank for $1.   

This latest $7.2 billion loss by French bank Société Généralé who today find themselves with rogue junior trader Jérôme Kerviel at the helm of a string of bets that at one time had $50 billion of their funds on the table is troubling.  When the dust settled their final loss was $7.2 billion.  I can almost hear their sighs of relief that the loss was smaller than originally thought.  

My question is, where were the internal checks and balances that should have prevented a trader with a gambling habit from running wild?  How does it get so far out of hand?  It is especially of concern to me since I recently watched the movie “Rogue Trader” starring Ewan McGregor.  When Nick Leeson brought down Bearings bank I was a bank officer at what is now J.P. Morgan Chase bank.  As a member of the banking establishment I listened and watched as my bank made decisions and added controls so that it wouldn’t happen to us.

Interestingly, trader Jérôme Kerviel scoffs at the bank for missing the elementary sign that something is wrong.  He only took four days off last year.  “It is one of the first rules of internal controls:  a trader who does not take vacations is a trader who doesn’t want his books to be seen by others” he said.  It seems he considers them responsible for not executing the checks and balances created to prevent just this behavior.

Leeson wrote the best selling book “Rogue Trader: How I brought Down Bearing Bank and Shook the Financial World.”   His life was made into the above mentioned movie, he did his few years in prison and today he is a highly paid public speaker.  He’s now written another book titled “Back From the Brink: Coping with Stress.”  Bringing others to financial ruin apparently has its rewards.

The way I see it, this is a wake up call for us when we decide where to put our 401K or savings.  These people are using our funds to do the trades.  They are responsible and have a fiduciary duty to ensure our life savings are protected and that our pot of gold grows.  We should be ever vigilant about the trustees we put our money with.  

I recommend that you watch the movie “Rogue Trader” then contact your 401K people and make sure your savings are safe.  Banks only create money by using our money.  How well are they watching over yours?  Is someone minding the store are are the checks and balances crumbling as I write this?

It seems the banks have learned nothing since 1995.  Have you?

Well we here go again making history!  N'digo magazine is one of my favorites in Chicago because they cover the news in a unique way for people of color.  I love them so much that I interviewed and included N'Digo publisher Hermene Hartman in my book Self Creation: 10 Powerful Principles for Changing Your Life.  An excellent example of a self creator, Hermene was recently on the O'Reilly Factor sharing her ideas with America.

Hermene's N'Digo magazine cover article extolls the virtues of Alexis Levi-Scott, the world’s first Black woman owner, CEO and general manager of a professional male basketball team –– the Las Vegas Stars of the International Basketball League (IBL) Expansion Teams. “As a child, I’ve always known that I was going to be someone special. I was blessed with the gift of envisioning the future, so I knew something would happen,” recalls Alexis.

Don’t place her on the list of famous immortals yet, because just like many single Black mothers today, Alexis is a hard worker. A registered nurse for 14 years, this dedicated and devoted parent inspired her sons to play basketball and in return they inspired her to become more involved with their activities, which catapulted her greatest achievement thus far. 

Read the story about this incredible woman's journey to achievement of her destiny at  http://www.ndigo.com/coverstory.asp - Be sure to sign up for the N'Digo newsletter while you're there.  Tell them I sent you!

I am happy to share that the TSA has finally given road warriors like me a chance to give them a piece of our minds.  Yes, folks, they've started a blog that says  "This blog is sponsored by the Transportation Security Administration to facilitate an ongoing dialogue on innovations in security, technology and the checkpoint screening process." 

Previously we just didn't have a way to get these brainstorms to TSA administrator Kip Hawley and the other decision-makers. 

But last week the TSA added a blog to their website in order to “facilitate an ongoing dialogue on innovations in security, technology and the checkpoint screening process.” Titled the “Evolution of Security”  the blog invites us to post comments, questions and complaints about TSA issues.  And we certainly have.  In the first 48 hours, more than 1,000 comments were received. Now you can add yours as well.

A visit to the blog reveals a flood of postings from irritated travelers along with responses from the TSA.   I know you want to give them a piece of your mind.  So here's your chance.  Just visit their blog "Evolution of Security" at http://www.tsa.gov/blog and tell them what you think, ask your questions, and get a few things off your chest.

"No one can stop an idea whose time has come.  Nothing can stop and idea whose time has come."  So said Victor Hugo.

Today the JAD Woman Talking Blog announces our support and endorsement of Barack Obama as the next President of the United States.  Please take a moment to visit the link below to learn what happens when creativity and an idea whose time has come fuses together. 

The Yes We Can Song was written by will.i.am and performed by many artists who are also moved to express that YES WE CAN!

Just turn on the sound on your computer and click this link to watch the video of the song Yes We Can -  http://www.dipdive.com/

I am filled with emotion and HOPE.

PEACE  -  Yvonne F. Brown

February 1st is National Go Red Day. Your support is a vital part of the movement.  JAD Communications supports the campaign and encourages you to visit the  Go Red For Women website at http://www.goredforwomen.org/index.aspx and support the cause throughout the month by shopping for Go Red products! 

Remember to sign up and join the movement.