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Businesses The Almighty Buck

The 3 Billion Dollar Typo 398

Rand310 writes "Mizuho, the world's second largest bank based in Japan, with total assets of nearly the GDP of France (around 1.2 trillion USD) accidentally sold 610,000 shares, valued at $3.1 billion... for 1 yen each. A 27 billion yen loss would almost match Mizuho Securities' group net profit of 28.1 billion yen for the financial year ended in March, though... the incident would not threaten the brokerage's financial stability. FYI 1 yen is about .83 cents. Yesterday one share was selling at $5,065, today you could theoretically have bought 610,000 shares for $.0083 each. An expensive switch of variables."
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The 3 Billion Dollar Typo

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  • Data Validation (Score:5, Insightful)

    by ||Plazm|| ( 76138 ) on Friday December 09, 2005 @12:12PM (#14220132)
    I wonder how many times the person(s) hit "Yes I am sure" when the system was telling them not to do it...
  • by LordPhantom ( 763327 ) on Friday December 09, 2005 @12:12PM (#14220137)
    From TFA..... No buyer was actually able to pick up the phantom shares for 1 yen due to market rules designed to limit price fluctuations, but the shares may have gone as cheaply as 572,000 yen ($4,750) each, a more than 9 percent discount to the intended sale price. .... Mizuho's error has so far cost the broker some 27 billion yen ($224 million), Fukuda estimated. It appears that, in fact, they didn't lose BILLIONS but a few millions. Still large, but the post is misleading.
  • Error prevention? (Score:3, Insightful)

    by D-Cypell ( 446534 ) on Friday December 09, 2005 @12:14PM (#14220156)
    Surely there was some kind of trigger in the software that would detect these kind of errors! Windows asks if im sure when I try to delete a file and even then it only sends to to the recyle bin!

  • by ReformedExCon ( 897248 ) <reformed.excon@gmail.com> on Friday December 09, 2005 @12:14PM (#14220160)
    When you think about it, all these investment banks do is take nothing, divide it up, sell it, and make a huge amount of profit on the hard work of entrepreneurs. Mizuho will no doubt be forced to pay back the difference to J-Com, but that's too late, really. Some lucky souls bought in at that low price and made up to 500,000% profit on the error.

    So much capital floating around based on the creation of nothing. Is there a more apt description of the modern world?
  • by 91degrees ( 207121 ) on Friday December 09, 2005 @12:17PM (#14220195) Journal
    How much yen do you want to bet that it's one of those stupid "Are you sure?" dialog boxes that everyone clicks "Yes" to without actually thinking about what it's asking? Ah, how I love ignoring those warnings, too.

    It's a constant grip of mine. I hate unneccesary confirmation dialogs (the result being I hate alost all of them). I can just about tolerate "This will overwrite a file", or "Save before quit" ones, but I keep running across designers who think insist on using modal dialogs for feedback. "You have just pressed a key. OK/Cancel". I make a point of querying this behaviour any time a designer comes up with it.
  • by Anonymous Coward on Friday December 09, 2005 @12:17PM (#14220205)
    As someone else pointed out Not On Slashdot, something like this has been reported before. [ncl.ac.uk] 4 years before, in fact. Note that the number & price of the shares in each report are 610,000 shares at 1 yen each.

    Now, what do you think that chances of this happening twice are? Yeah, that's what I thought.
  • by antifoidulus ( 807088 ) on Friday December 09, 2005 @12:19PM (#14220226) Homepage Journal
    Um, the summary says 1 yen is worth ".83 cents", which is just about .0082977 USD...congrats on proving the summary correct when you were trying to prove it wrong :P
  • by Irish-DnB ( 161087 ) * on Friday December 09, 2005 @12:20PM (#14220237) Homepage
    The first thing that came into my head when I read that story this morning was Nelson Muntz going HA-HA.
  • by fossa ( 212602 ) <pat7.gmx@net> on Friday December 09, 2005 @12:37PM (#14220403) Journal

    Yup. As others have pointed out, this is yet another usability problem. If one simply mistake can cause so much damage, then it should raise a warning flag. Which it did, but apparently the warning flag was utterly useless. Silly "ok/cancel" dialogs are not enough to cause the user to stop and think about what he is doing. If such dialogs were correctly implemented, they would be extremely annoying which would lead to two things: 1) it'd be much more unlikely to make a mistake and 2) as another poster pointed out, almost *all* such dialogs are for something minor (do you really want to quit??) and better safeguarded against in some other way (e.g. "undo"), and thus would [hopefully] quickly disappear if they must be extremely annoying rather than merely annoying.

    Raskin's suggestion for a dialog that would work is something like: "You are about to perform dangerous and undoable action X. If you wish to proceed, type 'Yes, perform action X' followed by the [11th] word of this sentance." You'd be asked to type a different word each time so you could not memorize it and learn to confirm the action without thinking. Highly obnoxious, yes. Hopefully designers would learn to only make use of it when absolutely necessary.

    P.S. I'd just like to say that Firefox without the SessionSaver extension is painful. Why on earth isn't SessionSaver included by default? "You have 9 tabs open that took you many hours to arrange. Close them all forever: yes/no?". And if something crashes, you don't even get the annoying dialog...

  • by symbolic ( 11752 ) on Friday December 09, 2005 @12:37PM (#14220411)
    Interesting observation. I have to say that US execs/CEOS, by comparison, act like spoiled little children...they deny responsibility, take as much as they can get away with, constantly inflate their worth (read, delusional - what is so magic about a CEO that the salary has to keep climbing in proportion to the amount everyone else in the company is paid?), etc.

    "Look Ma! I led a company into a miserable state, fired 3,000 employees because of it, and gave myself a 10% raise! Wow I must be good!"
  • by Gordonjcp ( 186804 ) on Friday December 09, 2005 @12:43PM (#14220473) Homepage
    I know that obnoxious "Are you sure?" messages are just a bloody nuisance, but maybe a kind of "smart" version would be good.

    In this case, it would spot that you were about to do something *very* odd, and print:
    "Are you sure?"
    'Y'
    "Are you *really* sure?"
    'Y'
    "Ok, so what are you so sure you want to do?"
    '... uhm'
  • by pubjames ( 468013 ) on Friday December 09, 2005 @12:44PM (#14220491)
    We Americans, though, are FAR more concerned with pointing the finger at someone and punishing them into oblivion.

    A lesson I learnt from a former boss: Someone screwed-up bigtime on a project, potentially costing us an important client. They realised their mistake and told the boss. The boss didn't explode, shout, or fire the employee, he just very calmy asked that everyone help to rescue as much as we could from the situation. When I spoke to him later about it, he said that it would have been counter productive to blame someone who new they had made a mistake and probably felt very bad about it. In my book, that's a good people manager.
     
  • by xenocide2 ( 231786 ) on Friday December 09, 2005 @12:53PM (#14220597) Homepage
    The difference is that when a US exec screws up at this magnitude, reguardless of how much apologizing happens, they will be canned in the very near future. They also will face a very likely suit in court for defrauding investors. In Japan, it seems businessmen apologize for everything, yet very little gets fixed. I guess I'd understand the culture more if I lived there for long enough, but it seems a bit strange to me.

    Don't take this as a defense of American corporate ethos, or a criticism of Japanese ones, though. The two countries simply have different Zeitgeists. For whatever reasons the massive conglomerates that dominate Japan are never upset by newer competition. What I've yet to discover, is whether the privitization of Japan Post is a signal that the day of ruling families is over, or whether it's a signal that the government will no longer compete with them.
  • by Cecil ( 37810 ) on Friday December 09, 2005 @12:55PM (#14220620) Homepage
    Apply - "Do you really want to apply these changes? Yes/No"

    No. I went into the property pages for fun, made modifications because I was bored, then hit Apply by accident.

    Yes of COURSE I want to make the changes you stupid software, argh!
  • by The employee can cho ( 857896 ) on Friday December 09, 2005 @12:59PM (#14220666)
    Then why are you still here?
  • by Fnkmaster ( 89084 ) on Friday December 09, 2005 @01:03PM (#14220696)
    If these people create nothing of value, then why are people willing to pay them for it? This makes no sense from a basic economic perspective - if there are no gains from trade, why is trade occurring? Now you could try to argue that there are a small number of suppliers that engage in cartel price fixing, but that's hard to buy, there are many boutique investment banks and the like, and none of their services are cheap.

    There is a reason for this. Entrepreneurs and executives *need* access to capital markets. They need private equity funds and public market access to grow their businesses. Banks bring trust, reputation, financial expertise and legal expertise to the table. Sure, I think fees for some transactions are too high, but you can always go to somebody else. The bank scrapes a couple percent off the top for each transaction. Really, is this so terrible for the value they provide? Most companies don't seem to think so. The reason they make so much money is that they do tons and tons of deals, and a few percent on the really big deals adds up to a lot of money.
  • by fallen1 ( 230220 ) on Friday December 09, 2005 @01:04PM (#14220710) Homepage
    You know, all of the people posting on Slashdot about how "Digg is the future" are completely full of shit (not just singling you out Bombadier Beetle). What you seem to fail to realize (or, more likely, do realize and ignore in the hopes of someone responding to your troll [congrats! I'm responding :)]) is that the two sites serve genereally opposite purposes even though they are, technically, both tech-related sites. Slashdot is about having an in-depth conversation with peers and a chance to hear others take on the matter at hand. Digg is about seeing what hits the front page with high diggs and deciding "Do I want to read this story or not?" with, basically, no discussion.

    Now please go troll somewhere else - Slashdot has enough of them as it is. I hear that Digg is looking for more so go play in their yard.

    PS - I have Digg as one of my home pages on Firefox so I do check/read both sites so please no flames about "You don't know what you're talking about since you obviously don't dig Digg!"
  • by mikolas ( 223480 ) on Friday December 09, 2005 @01:19PM (#14220851) Homepage
    So it seems they are using Windows. I think it's quite common to overlook all warnings after working with Windows for some time.
  • YASPVG (Score:3, Insightful)

    by istartedi ( 132515 ) on Friday December 09, 2005 @01:36PM (#14221018) Journal

    Yet Anotehr Slasdhot Page View Generator. Brilliant! Instead of quoting exchange rates based on the unit denomination of the two countries (as is customary), quote them using one of either country's smaller denominations. In this case, US pennies. You only need one person to misread it and think that the exchange rate has a misplaced decimal. If it will make you feel any better, I almost fell for this myself. I've said it before and I'll say it again, errors on /. stories aren't mistakes. They're pure pageview generating genius! Hats off.

  • by tylernt ( 581794 ) on Friday December 09, 2005 @03:20PM (#14222104)
    Windows steals focus from me all the time. I can't count how many times I'll be typing in an email (or on a web page like /.) when suddenly I'm somewhere else and windows and dialogs are flashing wildly. Another pet peeve is entering keys for Microsoft products. I'm concentrating on reading the key and typing on the keyboard, then when I look up I discover I have to type the whole thing all over again because something stole the freaking focus while I was typing.

    If I were to write a Window Manager, any program with input focus and has had keystrokes in the last 3 seconds *cannot* lose focus to *anything* short of something actually crashing.

    Also, any confirmation dialogs would have no default button selected, so hitting enter or space would do nothing.
  • Making mistakes (Score:4, Insightful)

    by Clueless Moron ( 548336 ) on Friday December 09, 2005 @08:31PM (#14225074)
    My boss at my first job had it all summed up:
    If you're not making mistakes, you're not learning.

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