Was Amaranth’s Brian Hunter a rogue trader? That question is drawing understandable debate, including a poll at Dealbreaker (where they entertainingly typo into calling him a “rouge trader” — yeah, those rouge traders are trouble), and this Reuters piece.
My view: A rogue trader takes highly risky positions unbeknownst to the firm and then layers on leverage to try to escape. Hunter’s positions were seemingly well known to Amaranth, they just went in the opposite direction from what risk management (and Hunter) expected.
So, Rogue or not? Not.