We have been eager for a long time to hear the other side of last year’s mega losses at Société Générale (SCGLF), where a lone trader allegedly gambled away EUR 4.9 billion without anyone realizing it. Having worked at a French bank for a while ourselves, we have always felt that Kerviel’s losses were possible only due to the acquiescence of his superiors, who chose not to look too closely at his stellar track record. The beauty of that strategy, which we have witnessed on a smaller scale in the enterprise we worked at, is that everyone is happy while things go well. But if there is a turn of events to the worse, you can blame it on a rogue trader. Read the rest of this entry »
Now that Patricia Dunn and her partners in “crime”, HP’s ex-counsel Kevin Hunsaker and investigator Anthony Gentilucci, are between jobs, the executive recruiters here at The Deal Sleuth are busy looking for new opportunities for her team.
One potential employer that springs to mind is Petco (PETC), which has a problem with shrinkage. We are not just talking about shrinkig profit margins, which dropped from 33.1% to 31.6% from the same quarter of last year. Most of that fall is, in fact, attributable to Petco’s rapid expansion, from which shareholders will unfortunately see no benefit because the usual lineup of private equity buyers is snatching up the firm.
Instead, the shrinkage where we think Pat and her buddies can help involves Petco’s gas price squeezed customers slipping dog biscuits past the indifferent teenager at the cash register without paying. It is unusual that a major retailer mentions increases of this sort of shrinkage as a reason for the declining margins. Some in-house detectives may well do wonders to Petco’s margins. And who would be better suited than Patricia Dunn and her team, with their invaluable experience in handling gumshoes acquired at HP?