SWITZERLAND'S UBS said it has discovered that unauthorised
trades by a trader in its investment bank caused a loss of about $2bn.
Here are details of major rogue traders of the last two
decades:
Oct 2010 - Former Societe Generale trader Jerome Kerviel
sentenced to three years in prison by a Paris court for his role in a trading
scandal, and ordered to reimburse the French bank €4.9bn ($6.7bn). The
33-year-old was found guilty of breach of trust, computer abuse and forgery.
April 2010 - MF Global employee Evan Dooley indicted on
fraud and other charges after racking up $141m in losses speculating in wheat
futures contracts in February 2008. The incident was disclosed in December
2009, when US regulators slapped a $10m fine on MF Global for lax supervision.
June 2009 - A trader at London-based oil brokerage PVM Oil
Futures racked up losses of almost $10m following a series of unauthorised
trades believed to have caused a spike in global crude prices. The trader,
named as Steve Perkins, was later banned.
May 2009 - Former Morgan Stanley trader David Redmond banned
after building up a big unauthorised oil futures position after a long liquid
lunch and then hiding the deals overnight.
February 2009 - Former senior trader at Merrill Lynch in
London Alexis Stenfors banned for at least five years for deliberately
overvaluing his trading positions to hide his losses, forcing the US bank to
make a $456m writedown.
July 2006 - David Bullen and Vince Ficarra, two former
foreign exchange options dealers at National Australia Bank, jailed after a
2004 scandal that cost NAB A$252m ($187m).
They were found guilty of making false trades to safeguard
bonuses and hide losses, and joined other former NAB traders Luke Duffy and
Gianni Gray in prison. Bullen had already published Fake: My life as a rogue
trader, about how he had replaced hard drinking and drugs with Buddhism.
March/April 2006 - Hedge fund Amaranth Advisors racked up
$6.4bn in losses from natural gas contracts on NYMEX before folding in 2006.
The Commodity Futures Trading Commission later charged Amaranth and its former
head trader, Brian Hunter, with trying to manipulate natural gas futures
prices.
February 2002 - Allied Irish Bank said rogue trader John
Rusnak had defrauded its US subsidiary Allfirst of $691m. Rusnak was sentenced
to seven-and-a-half years in prison after he admitted devising a scheme that
netted him $850 000 in salary and bonuses from 1997 to 2001.
January 2001 - Former chief financial officer of the
now-defunct Griffin Trading Co, Scott Szach, charged with diverting more than
$5.56m from a company bank account to a brokerage trading account to fund
unauthorised trading in the 18 months before the firm's demise.
March 1998 - Joseph Jett, a former top Kidder Peabody bond
trader, accused of creating false profits of $350m to hide losses and failing
to keep proper records, in a scandal that eventually led to the sale of the
firm. He was ordered by a judge in September 2007 to repay $8.2m in losses and
was fined $200 000.
June 1996 - Japanese trading house Sumitomo Corp suffers a
$2.6bn loss over 10 years from unauthorised copper trades, primarily by chief
trader Yasuo Hamanaka. Sumitomo fired Hamanaka, once dubbed Mr Five Percent
because his trading team was believed to control 5% of the world's copper
trading. He was later jailed for eight years.
September 1995 - Japan's Daiwa Bank suffered a $1.1bn loss
from unauthorised bond trading by Toshihide Iguchi, one of its executives in
the United States. He was imprisoned in 1996.
February 1995 - Barings, one of Britain's oldest investment
banks, collapses after Nick Leeson, a futures trader in Singapore, lost $1.4bn
in derivatives trading. Leeson was jailed in Singapore. Barings was
subsequently sold to Dutch bank ING for £1.
April 1992 - Indian banks and brokers accused of colluding
illegally to siphon $1.3bn from the interbank securities market to fuel a boom
on the Bombay Stock Exchange. Top broker Harshad Mehta, the main person accused
in the scandal, died in jail during the trial.