Rain Ruins 1 Of Norway’S Richest Men

Via The Citizen (South Africa), Sept. 14:

Betting the incorrect agency on the unloosen energy marketplace order has brought an extremely wealthy Norwegian ability trader some bankruptcy.

He built his fortune on dizzying forecasts simply pelting washed it all away: Einar Aas, 1 of Norway’s richest men, is immediately teetering on the verge of bankruptcy afterwards betting the incorrect agency on the unloosen energy market.

H5N1 media-shy individual trader, Aas made headlines on Fri inwards Kingdom of Norway in addition to beyond, his misfortunes uncannily coinciding amongst the tenth anniversary of the collapse of United States of America of America investment banking concern Lehman Brothers.

The 47-year-old ability trader said inwards a disputation slow Th he was immediately risking “personal bankruptcy”.

Taking aggressive positions, Aas bet that the spread betwixt unloosen energy prices on the Nordic in addition to High German electricity markets would narrow.

But, afterwards an unusually dry out summer, heavy rains before this calendar week filled the reservoirs of hydroelectric dams that render much of northern Europe’s electricity, sending prices tumbling.
At the same time, a ascent inwards carbon prices pushed upwards the High German cost of electricity, which is largely fossil fuel-based.

As a result, the spread betwixt the ii markets grew bigger than e'er – upwards to 17 times the normal spread, according to the Financial Times.

Aas used his terminal remaining liquidity – 350 1 G m kroner (36 1 G m euros, $42.5 million) – to comprehend his positions, simply however constitute himself inwards default of payment.

“I had positions that were besides high compared to the liquidity on the market,” he said on Thursday.

10,000 euros an hr
It was a roughshod autumn from grace for the human born on a farm inwards the southern town of Grimstad in addition to who has several times topped the listing of Norway’s highest earners.

The old Agder Energi trader, who left the companionship to become individual inwards 2005, made a mind-boggling 833 1 G m kroner inwards taxable income inwards 2016, according to taxation figures, which are populace inwards the Scandinavian country.

This amounted to an hourly income of 95,000 kroner, taking his personal fortune to an estimated 2.17 billion kroner.

Described inwards the Norwegian media every bit a vivid educatee who developed a passion for poker in addition to race Equus caballus betting at secondary school, he immediately risks having to sell his luxury existent estate digs, including a spectacular 350-square-metre (3,750-square-foot) rooftop floor inwards key Oslo.

The exact ambit of the impairment remains to hold out determined, simply the Norwegian media are already calling it “the biggest loss” e'er recorded past times a individual somebody inwards Norway.
The Nasdaq stock central is also licking its wounds....

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