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List of trading losses

 
Wikipedia: List of trading losses
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 This article may require cleanup to meet Wikipedia's quality standards. Please improve this article if you can. (December 2008)

The following contains a list of trading losses of the equivalent of USD100 million or higher. Due to the secretive nature of many hedge funds and fund managers, some notable losses may never be reported to the public. The list is ordered by the real amount lost, starting with the greatest.

This list includes both fraudulent and non-fraudulent losses, excluding losses associated with Bernie Madoff's Ponzi scheme which is estimated in the $50 billion range.

This list is incomplete; you can help by expanding it.
# Nominal Amount Lost USD FX Rate at time of loss USD Equivalent at time of loss USD Inflation since loss until 2007-12-31[1] Real Amount Lost Country Company Source of Loss Year Person(s) associated with incident
1 EUR 4.9 bn  1.45 USD 7.1 bn  0% USD 7.1 bn   France Société Générale[2] European Index Futures 2008 Kerviel, JérômeJérôme Kerviel
2 USD 6.5 bn  1 USD 6.5 bn  3% USD 6.7 bn   United States Amaranth Advisors[3] Gas Futures 2006 Hunter, BrianBrian Hunter
3 USD 4.6 bn  1 USD 4.6 bn  27% USD 5.85 bn   United States Long Term Capital Management[4] Interest Rate and Equity Derivatives 1998 Meriwether, JohnJohn Meriwether
4 JPY 285 bn  109.5 USD 2.6 bn  32% USD 3.44 bn   Japan Sumitomo Corporation[5] Copper Futures 1996 Hamanaka, YasuoYasuo Hamanaka
5 USD 1.7 bn[6] 1 USD 1.7 bn  40% USD 2.38 bn   United States Orange County[7] Interest Rate Derivatives 1994 Citron, RobertRobert Citron
6 BRL 4.62 Bn  2.20 USD 2.1 Bn ; 0% USD 2.1 bn  Brazil Aracruz[8] FX Options 2008 Zaguri, IsacIsac Zaguri, Rafael Sotero
7 EUR 1.4 bn  1.25 USD 1.9 bn  3% USD 1.97 bn   Austria BAWAG[9] Foreign Exchange Trading 2000 Flöttl, WolfgangWolfgang Flöttl, Helmut Elsner[10]
8 DEM 2.63 bn  0.52 USD 1.38 bn  43% USD 1.96 bn   Germany Metallgesellschaft[11] Oil Futures 1993 Schimmelbusch, HeinzHeinz Schimmelbusch[12]
9 HKD 14.7 bn  7.76 USD 1.9 bn  0% USD 1.9 bn   China CITIC Pacific[13] Foreign Exchange Trading 2008 Yung, FrancesFrances Yung
10 GBP 827 mio  1.6 USD 1.323 bn  36% USD 1.8 bn   United Kingdom Barings Bank[14] Nikkei Futures 1995 Leeson, NickNick Leeson
11 JPY 103.4 bn  94 USD 1.1 bn  36% USD 1.5 bn   Japan Daiwa Bank[15] Bonds 1995 Iguchi, ToshihideToshihide Iguchi
12 EUR 0.75 bn  1.30 USD 0.975 bn  0% USD 0.975  France Groupe Caisse d'Epargne [16] Derivatives 2008 Picano-Nacci, BorisBoris Picano-Nacci
13 EUR 0.60 bn  USD 0.82 bn   Germany WestLB [17] Common and Preferred Shares 2007 Breuers, FriedhelmFriedhelm Breuers[18]
14 USD 0.69 bn   United States AIB/Allfirst[19] Foreign Exchange Options 2002 Rusnak, JohnJohn Rusnak
15 GBP 0.4 bn  USD 0.7 bn   United Kingdom Morgan Grenfell[20] Shares 1997 Young, PeterPeter Young
16 CDN 0.68 bn  0.9 USD 0.61 bn  2% USD 0.62 bn   Canada Bank of Montreal[21][22] Natural gas derivatives 2007 David Lee, Kevin Cassidy[23][24][25][26]
17 USD 0.6 bn   United States Askin Capital Management[27] Mortgage-Backed Securities 1994 Askin, DavidDavid Askin
18 USD 0.55 bn   China China Aviation Oil (Singapore)[28] Oil Futures and Options 2004 Jiulin, ChenChen Jiulin
19 BRL 2 bio  2.00 USD 1Mio mio   Brazil Sadia[29] FX and Credit Options 2008 Ferreira, AdrianoAdriano Ferreira, Álvaro Ballejo
20 CHF 0.63 bn  USD 0.5 bn  United Bank of Switzerland[30] Equity Derivatives 1998 Goldstein, RamyRamy Goldstein
21 USD 0.4 bn   United States Manhattan Investment Fund[31] Short IT stocks during the internet bubble 2000 Berger, MichaelMichael Berger
22 EUR 0.30 bn  USD 0.4 bn   Austria Hypo Group Alpe Adria[32] Foreign Exchange Trading 2004
23 EUR 0.30 bn  USD 0.4 bn  Dexia Bank[33] Corporate Bonds 2001
24 DEM 0.47 bn  USD 0.36 bn   Germany Herstatt Bank[34] Foreign Exchange Trading 1974 Dattel, DanyDany Dattel
25 USD 0.35 bn   United States Kidder Peabody[35] Government Bonds 1994 Jett, JosephJoseph Jett
26 USD 0.35 bn   United States Calyon[36] Credit Derivatives 2007 Bierbaum, Richard "Chip"Richard "Chip" Bierbaum
27 AUD 0.36 bn  USD 0.28 bn   Australia National Australia Bank[37] Foreign Exchange Trading 2004 Duffy, LukeLuke Duffy
28 USD 0.28 bn   United States State of West Virginia[38] Fixed Income and Interest Rate Derivatives 1987 Manchin , A. JamesA. James Manchin
29 USD 0.2 bn   China State Reserves Bureau Copper Scandal[39] Copper Futures 2005 Qibing, LiuLiu Qibing[40]
30 USD 0.28 bn   United States Merrill Lynch[41] Mortgages (IOs and POs) Trading 1987 Rubin, Howard A.Howard A. Rubin
31 USD 0.16 bn   United States Procter & Gamble[42] Interest Rate Derivatives 1994 Mains, RaymondRaymond Mains
32 GBP 90  mio  USD 0.2 bn   United Kingdom NatWest[43] Interest Rate Options 1997 Papouis, KyriacosKyriacos Papouis
33 USD 0.14 bn   United States MF Global[44] Wheat Futures 2008 Dooley, EvanEvan Dooley
34 USD 0.12 bn   United States Morgan Stanley[45] Credit-index options 2008 Matt Piper
35 USD 0.11 bn   United States Cuyahoga County, Ohio[46] Leveraged Fixed Income 1994
36 SEK 630 mio  USD 0.1 bn   Sweden Carnegie Investment Bank[47] Equity Derivatives 2007 CEO, CarnegieCarnegie CEO, Carnegie Board
37 USD 0.1 bn   Croatia Riječka banka (Rijeka Bank)[48] Foreign Exchange Trading 2002 Nodilo, EduardEduard Nodilo

See also

References

  1. ^ "US Consumer Price Index". ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt. 
  2. ^ Schwartz, Nelson D. (2008-01-25). "A Spiral of Losses by a ‘Plain Vanilla’ Trader". The New York Times. http://www.nytimes.com/2008/01/25/business/worldbusiness/25trader.html. Retrieved 2008-01-25. 
  3. ^ Brian Hunter, Amaranth, hedge funds, MoneyWeek, 2006-10-06. Retrieved 2008-03-21
  4. ^ FAILED WIZARDS OF WALL STREET, BusinessWeek, 1998-09-21. Retrieved 2008-03-21
  5. ^ Rogue copper trader draws eight-year prison term, Japan Times, 1998-03-26. Retrieved 2008-03-21
  6. ^ The Effect of the Orange County Bankruptcy on Residential Real Estate Prices, Thomas A. Evans, Chicago Graduate School of Business, November 14, 2006
  7. ^ Greenwald, John (December 19, 1994). "The California Wipeout". Time Magazine. http://www.time.com/time/magazine/article/0,9171,982029,00.html. Retrieved 2007-07-22. 
  8. ^ "Brazil Stocks Tumble After Aracruz, Sadia Post Currency Losses ", Gazeta Mercantil, 26 September 2008
  9. ^ Bawag Scrutiny Mounts, Putting CEO to the Test, October 21, 2005, Wall Street Journal
  10. ^ Trial begins Monday for suspects in Austrian bank scandal, July 13, 2007, International Herald Tribune
  11. ^ New York Times, April 5, 1996
  12. ^ International Harald Tribune, August 10, 2007
  13. ^ CITIC Pacific warns potential $2 billion forex losses, Reuters October 20, 2008
  14. ^ Rogue Trader: How I Brought Down Barings Bank and Shook the Financial World by Nick Leeson and Edward Whitley (Hardcover - Mar 1996) ISBN 0-3165-1856-5
  15. ^ An Unusual Path to Big-Time Trading, New York Times, September 27, 1995. Retrieved 2008-01-24
  16. ^ Caisse d'Epargne chairman resigns after trading loss, Reuters, October28, 2008
  17. ^ Pressure mounts on WestLB to merge after reporting big trading losses, International Herald Tribune, August 30, 2007
  18. ^ WestLB ousts top traders after losses, Times Online, April 5, 2007
  19. ^ Allied Irish Banks case study at ERisk.com
  20. ^ Morgan Grenfell case study at ERisk.com
  21. ^ BMO trading loss hits $680M
  22. ^ Bank of Montreal Raises Trading Loss to C$680 Million
  23. ^ Former bank natgas trader gets $500,000 fine-CFTC Reuters, 6-November-2009
  24. ^ Ex-BMO Lee Fined $500,000 by New York Court, U.S. CFTC Says Bloomberg, 6-November-2009
  25. ^ CFTC Fines Ex-BMO NatGas Trader emii.com, 9-November-2009
  26. ^ Lee fined $500,000 for misvaluing gas options and deceiving BMO Futures and Options Intelligence, 9-November-2009
  27. ^ Sad episodes of Global securitisation: The Hall of Shame
  28. ^ "Jail term for China Aviation boss", BBC News, 21 March 2006
  29. ^ "Brazil Stocks Tumble After Aracruz, Sadia Post Currency Losses ", Gazeta Mercantil, 26 September 2008
  30. ^ The Fall of the UBS: The Reasons Behind the Decline of the Union Bank of Switzerland by Dirk Schutz, ISBN 0944188206
  31. ^ The Bankruptcy Development That Has Wall St. Worried, New York Times, 2007-02-23. Retrieved 2008-01-24
  32. ^ Banking: Watchdogs caught napping, Financial Times, 2007-10-29. Retrieved 2008-01-24
  33. ^ Dexia sink €300m in bond fraud: a mere drop in the ocean
  34. ^ Der Fall der Goldjungen, Ex-Devisenhändler Danny Dattel klagt noch vor dem Bezirksgericht (de)
  35. ^ In the Matter of Orlando Joseph Jett, U.S. Securities and Exchange Commission, March 5, 2004
  36. ^ Calyon Trader Fired for Losses Says He's No Rogue, Bloomberg, 2007-10-10. Retrieved 2009-06-01
  37. ^ Former NAB trader pleads guilty, International Herald Tribune, 2005-03-23. Retrieved 2008-01-24
  38. ^ Treasurer of West Virginia Retires Over Fund's Losses, New York Times, July 10, 1989. Retrieved 2008-03-22
  39. ^ City gripped by mystery of the phantom copper dealer, The Times, 2005-11-15. Retrieved 2008-01-24
  40. ^ Copper bottom, The Observer, November 20, 2005
  41. ^ Anatomy of a Staggering Loss, New York Times, 1987-05-11, Retrieved 2008-01-24
  42. ^ Procter & Gamble's Tale of Derivatives Woe, International Herald Tribune, 1994-04-14. Retrieved 2008-01-24
  43. ^ SFO probes NatWest black hole, Daily Telegraph, 1997-06-27. Retrieved 2008-01-24
  44. ^ Rogue Wheat Trader Blamed for $141 Million Loss, NYTimes.com, 2006-02-28. Retrieved 2008-03-03
  45. ^ Craig, Suzanne; Mollenkamp, Carrick (2008-06-19). "Still 'Brutal' at Morgan Stanley" (in English). The Wall Street Journal (Dow Jones): p. C1. "The trader, identified as Matt Piper, handled credit-index options that can act as insurance against defaults." 
  46. ^ Significant Losses Stemming from the Termination of Its SAFE Investment Program Erode County's Previously Substantial Financial Margins, Business Wire, Jan 5, 1995. Retrieved 2008-03-22
  47. ^ http://www.ap1.se/en/Financial-information-and-press/Press-releases/NewsContainer/2008/No-to-discharge-from-liability-for-Carnegies-former-board-and-CEO/, AP-Fonden, 2008-04-07
  48. ^ Croat trader puts bank in £70m crisis, Daily Telegraph, 2003-03-24. Retrieved 2008-01-24

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