Concepts: Asymmetric information, moral hazard, principal-agent problem
Background: Gi-hun meets with his childhood friend Cho Sang-woo who is now wanted for financial crimes. Sang-woo is a former team leader at an investment back. He invested his clients’ money in derivatives and futures options, losing 650 million won. Song-woo later admits that he lost 6 billion won and used family assets as financial collateral.
Question: Cho Sang-woo is not the only “rogue trader” who lost millions of dollars and faced criminal charges. Research three rogue traders who made the news in the past thirty years. Show how it illustrates asymmetric information and the principal-agent problem.