List of trading losses
From Infogalactic: the planetary knowledge core
The following contains a list of trading losses of the equivalent of USD100 million or higher. Trading losses are the amount of principal losses in an account.[1] Because of 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, but excludes losses associated with Bernie Madoff's Ponzi scheme, which is estimated in the $50 billion range, because Madoff did not lose the majority of this money in trading.
-
This list is incomplete; you can help by expanding it.
# | Nominal Amount Lost | USD FX Rate at time of loss[2] | USD Equivalent at time of loss | USD Inflation to 2007[3] | 2007 USD Amount Lost | Country | Company | Source of Loss | Year | Person(s) associated with incident |
---|---|---|---|---|---|---|---|---|---|---|
1 | USD 9 bn | 1 | USD 9 bn | -3.7% | USD 8.67 bn | United States | Morgan Stanley[4] | Credit Default Swaps | 2008 | Howie Hubler |
2 | $6.12 (EUR 4.9) bn | 0.679 | USD 7.22 bn | -3.7% | USD 6.95 bn | France | Société Générale[5] | European Index Futures | 2008 | Jérôme Kerviel |
3 | USD 6.5 bn | 1 | USD 6.50 bn | 2.8% | USD 6.69 bn | United States | Amaranth Advisors[6] | Gas Futures | 2006 | Brian Hunter |
4 | USD 4.6 bn | 1 | USD 4.6 bn | 27.2% | USD 5.85 bn | United States | Long Term Capital Management[7] | Interest Rate and Equity Derivatives | 1998 | John Meriwether |
5 | USD 5.80 bn | 1 | USD 5.80 bn | -7.0% | USD 5.80 bn | United Kingdom | JPMorgan Chase[8] | Credit default swaps | 2012 | Bruno Iksil |
6 | JPY 285 bn | 108.78 | USD 2.62 bn | 32.1% | USD 3.46 bn | Japan | Sumitomo Corporation[9] | Copper Futures | 1996 | Yasuo Hamanaka |
7 | BRL 4.62 bn | 1.833 | USD 2.52 bn | -3.7% | USD 2.43 bn | Brazil | Aracruz[10][11] | FX Options | 2008 | Isac Zagury, Rafael Sotero |
8 | USD 1.7 bn[12] | 1 | USD 1.7 bn | 39.9% | USD 2.38 bn | United States | Orange County[13] | Leveraged bond investments | 1994 | Robert Citron |
9 | DEM 2.63 bn | 1.655 | USD 1.59 bn | 43.5% | USD 2.28 bn | Germany | Metallgesellschaft[14] | Oil Futures | 1993 | Heinz Schimmelbusch[15] |
10 | JPY 166 bn | 111.08 | USD 1.49 bn | 43.5% | USD 2.14 bn | Japan | Showa Shell Sekiyu [16][17] | FX Forwards | 1993 | |
11 | JPY 1536 bn | 102.18 | USD 1.50 bn | 39.9% | USD 2.09 bn | Japan | Kashima Oil[17] | FX Forwards | 1994 | |
12 | USD 2 bn | 1 | USD 2 bn | -8.5% | USD 1.83 bn | United Kingdom | UBS[18] | Equities ETF and Delta 1 | 2011 | Kweku Adoboli |
13 | HKD 14.7 bn | 7.786 | USD 1.89 bn | -3.7% | USD 1.82 bn | China | CITIC Pacific[19] | Foreign Exchange Trading | 2008 | Frances Yung |
14 | GBP 827 mn | 0.633 | USD 1.31 bn | 36.1% | USD 1.78 bn | Singapore | Barings Bank[20] | Nikkei Futures | 1995 | Nick Leeson |
15 | RUB 78.5 bn | 38.98 | USD 2.01 bn | -12.6% | USD 1.76 bn | Russia | Transneft[21][22][23][24] | Derivatives | 2014 | Maksim Grishanin, VP Finance |
16 | USD 1.8 bn | 1 | USD 1.8 bn | -3.7% | USD 1.74 bn | United States | Deutsche Bank[25] | Derivatives | 2008 | Boaz Weinstein |
17 | $1.75 (EUR 1.4) bn | 0.923 | USD 1.29 bn [26] | 20.4% | USD 1.56 bn | Austria | BAWAG [27] | Foreign Exchange Trading | 2000 [26] | Wolfgang Flöttl, Helmut Elsner[27] |
18 | USD 1.1 bn | 1 | USD 1.10 bn | 36.1% | USD 1.50 bn | Japan | Daiwa Bank[28] | Bonds | 1995 | Toshihide Iguchi |
19 | USD .8 bn | 1 | USD .8 bn | 82.5% | USD 1.46 bn | United Kingdom | Soros Fund[29] | SP 500 Futures | 1987 | George Soros |
20 | $0.94 (EUR 0.75) bn | 0.679 | USD 1.10 bn | -3.7% | USD 1.06 bn | France | Groupe Caisse d'Epargne[30][31] | Derivatives | 2008 | Boris Picano-Nacci |
21 | BRL 2 bn | 1.833 | USD 1.09 bn | -3.7% | USD 1.05 bn | Brazil | Sadia[10][11][32] | FX and Credit Options | 2008 | Adriano Ferreira, Álvaro Ballejo |
22 | GBP 0.4 bn | 0.611 | USD 0.66 bn | 29.2% | USD 0.85 bn | United Kingdom | Morgan Grenfell[33] | Shares | 1997 | Peter Young |
23 | USD 0.6 bn | 1 | USD 0.60 bn | 39.9% | USD 0.84 bn | United States | Askin Capital Management[34] | Mortgage-Backed Securities | 1994 | David Askin |
24 | $0.75 (EUR 0.60) bn | 1.371 | USD 0.82 bn | 0.0 | USD 0.82 bn | Germany | WestLB[35] | Common and Preferred Shares | 2007 | Friedhelm Breuers[36] |
25 | USD 0.69 bn | 1 | USD 0.69 bn | 15.3% | USD 0.80 bn | United States | AIB/Allfirst[37] | Foreign Exchange Options | 2002 | John Rusnak |
26 | DEM 0.47 bn | 2.587 | USD 0.18 bn | 320.6% | USD 0.76 bn | Germany | Herstatt Bank[38][39] | Foreign Exchange Trading | 1974 | Dany Dattel |
27 | CAD 0.68 bn | 1.066 | USD 0.64 bn | 0% | USD 0.64 bn | Canada | Bank of Montreal[40][41] | Natural gas derivatives | 2007 | David Lee, Kevin Cassidy [42][43] |
28 | USD 0.55 bn | 1 | USD 0.55 bn | 9.8% | USD 0.60 bn | China | China Aviation Oil (Singapore)[44] | Oil Futures and Options | 2004 | Chen Jiulin |
29 | CHF 0.63 bn | 1.451 | USD 0.43 bn | 27.2% | USD 0.55 bn | Switzerland | Union Bank of Switzerland[45] | Equity Derivatives | 1998 | Ramy Goldstein |
30 | USD 0.28 bn | 1 | USD 0.28 bn | 82.5% | USD 0.51 bn | United States | Merrill Lynch[46] | Mortgages (IOs and POs) Trading | 1987 | Howard A. Rubin |
31 | USD 0.28 bn | 1 | USD 0.28 bn | 82.5% | USD 0.51 bn | United States | State of West Virginia[47] | Fixed Income and Interest Rate Derivatives | 1987 | A. James Manchin |
32 | USD 0.35 bn | 1 | USD 0.35 bn | 39.9% | USD 0.49 bn | United States | Kidder Peabody[48] | Government Bonds | 1994 | Joseph Jett |
33 | USD 0.4 bn | 1 | USD 0.40 bn | 20.4% | USD 0.48 bn | United States | Manhattan Investment Fund[49] | Short IT stocks during the internet bubble | 2000 | Michael Berger |
34 | $0.37 (EUR 0.30) bn | 1.244 | USD 0.37 bn | 9.8% | USD 0.41 bn | Austria | Hypo Alpe-Adria-Bank International[50] | Foreign Exchange Trading | 2004 | |
35 | USD 0.35 bn | 1 | USD 0.35 bn | 0.0% | USD 0.35 bn | United States | Calyon[51] | Credit Derivatives | 2007 | Richard "Chip" Bierbaum |
36 | AUD 0.36 bn | 1.171 | USD 0.31 bn | 9.8% | USD 0.34 bn | Australia | National Australia Bank[52] | Foreign Exchange Trading | 2004 | Luke Duffy, Gianni Gray, Vince Ficarra & David Bullen[53] |
37 | $0.37 (EUR 0.30) bn | 0.895 | USD 0.27 bn | 17.1% | USD 0.31 bn | Belgium | Dexia Bank[54] | Corporate Bonds | 2001 | |
38 | USD 0.207 bn | 1 | USD 0.207 bn | 43.5% | USD 0.30 bn | Chile | Codelco[55] | Copper, silver, gold futures | 1993 | Juan Pablo Davila |
39 | USD 0.16 bn | 1 | USD 0.16 bn | 39.9% | USD 0.22 bn | United States | Procter & Gamble[56] | Interest Rate Derivatives | 1994 | Raymond Mains |
40 | USD 0.2 bn | 1 | USD 0.20 bn | 6.2% | USD 0.21 bn | China | State Reserves Bureau Copper Scandal[57] | Copper Futures | 2005 | Liu Qibing[58] |
41 | GBP 0.09 bn | 0.611 | USD 0.15 bn | 29.2% | USD 0.19 bn | United Kingdom | NatWest[59] | Interest Rate Options | 1997 | Kyriacos Papouis |
42 | USD 0.11 bn | 1 | USD 0.11 bn | 39.9% | USD 0.15 bn | United States | Cuyahoga County, Ohio[60] | Leveraged Fixed Income | 1994 | |
43 | SEK 1.23 bn | 7.804 | USD 0.15 bn | -4.8% | USD 0.143 bn | Sweden | HQ Bank[61] | Equity Derivatives | 2010 | Fredrik Crafoord, Mikael König, Patrik Enblad |
44 | USD 0.14 bn | 1 | USD 0.14 bn | -3.7% | USD 0.13 bn | United States | MF Global[62] | Wheat Futures | 2008 | Evan Dooley |
45 | USD 0.12 bn | 1 | USD 0.12 bn | -3.7% | USD 0.12 bn | United States | Morgan Stanley[63] | Credit-index options | 2008 | Matt Piper |
46 | USD 0.1 bn | 1 | USD 0.10 bn | 15.3% | USD 0.12 bn | Croatia | Riječka banka (Rijeka Bank)[64] | Foreign Exchange Trading | 2002 | Eduard Nodilo |
See also
References
- ↑ Doss, Jason R. & Frankowski, Richard S. (2013). “The Practitioner’s Guide to Securities Arbitration.” Chicago: American Bar Association. p. 85. http://www.frankowskifirm.com/chapter-14-damages.html
- ↑ Lua error in package.lua at line 80: module 'strict' not found. Annual average for year quoted in table (usually year loss reported). All except AUD, EUR, GBP expressed as currency per USD
- ↑ Lua error in package.lua at line 80: module 'strict' not found. Using annual average CPI for year cited to 2007 average.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Brian Hunter, Amaranth, hedge funds, Bloomberg Businessweek, "A Rogues' Gallery of Traders", September 16, 2011. Retrieved 2014-01-09.
- ↑ FAILED WIZARDS OF WALL STREET, BusinessWeek, 1998-09-21. Retrieved 2008-03-21
- ↑ JPMorgan’s ‘London Whale’ Loss Rises to $3 Billion as Lawsuits Fly, Times Business
- ↑ Rogue copper trader draws eight-year prison term, Japan Times, 1998-03-26. Retrieved 2008-03-21
- ↑ 10.0 10.1 Lua error in package.lua at line 80: module 'strict' not found.
- ↑ 11.0 11.1 Lua error in package.lua at line 80: module 'strict' not found.
- ↑ The Effect of the Orange County Bankruptcy on Residential Real Estate Prices, Thomas A. Evans, Chicago Graduate School of Business, November 14, 2006
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ New York Times, April 5, 1996
- ↑ International Harald Tribune, August 10, 2007
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ 17.0 17.1 Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ CITIC Pacific warns potential $2 billion forex losses, Reuters October 20, 2008
- ↑ Rogue Trader: How I Brought Down Barings Bank and Shook the Financial World by Nick Leeson and Edward Whitley (Hardcover - Mar 1996) ISBN 0-316-51856-5
- ↑ How Gref and Tokarev downshifted Russia Moscow-Post.com, February 12, 2016.
- ↑ Consolidated financial statements of Transneft JSC prepared in accordance with IFRS for the year ended 31 December 2014
- ↑ Consolidated interim condensed financial statements of Transneft JSC prepared in accordance with IFRS for the nine months ended 30 September 2015
- ↑ Чистая прибыль "Транснефти" упала в 2,7 раза из-за финансовых расходов | Ведомости
- ↑ Deutsche Bank Fallen Trader Left Behind $1.8 Billion Hole
- ↑ 26.0 26.1 The trading that generated losses ended in 2000 but the losses were not uncovered until 2006. The USD equivalent shown here is for 2000; it is often quoted as USD 1.9 bn which is the euro amount converted at the 2006 FX rate.
- ↑ 27.0 27.1 Lua error in package.lua at line 80: module 'strict' not found.
- ↑ An Unusual Path to Big-Time Trading, New York Times, September 27, 1995. Retrieved 2008-01-24
- ↑ Martin Schwartz, Paul Flint, Dave Morine, Pit Bull: Lessons from Wall Street's Champion Day Trader, pg. 171, HarperBusiness, 1999 ISBN 0-88730-956-9
- ↑ Caisse d'Epargne chairman resigns after trading loss, Reuters, October 19, 2008
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Morgan Grenfell case study at ERisk.com
- ↑ Sad episodes of Global securitisation: The Hall of Shame
- ↑ Pressure mounts on WestLB to merge after reporting big trading losses, International Herald Tribune, August 30, 2007
- ↑ WestLB ousts top traders after losses, Times Online, April 5, 2007
- ↑ Allied Irish Banks case study at ERisk.com
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ BMO trading loss hits $680M
- ↑ Bank of Montreal Raises Trading Loss to C$680 Million
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Former bank natgas trader gets $500,000 fine-CFTC Reuters, 6-November-2009
- ↑ "Jail term for China Aviation boss", BBC News, 21 March 2006
- ↑ The Fall of the UBS: The Reasons Behind the Decline of the Union Bank of Switzerland by Dirk Schutz, ISBN 0-944188-20-6
- ↑ Anatomy of a Staggering Loss, New York Times, 1987-05-11, Retrieved 2008-01-24
- ↑ Treasurer of West Virginia Retires Over Fund's Losses, New York Times, July 10, 1989. Retrieved 2008-03-22
- ↑ In the Matter of Orlando Joseph Jett, U.S. Securities and Exchange Commission, March 5, 2004
- ↑ The Bankruptcy Development That Has Wall St. Worried, New York Times, 2007-02-23. Retrieved 2008-01-24
- ↑ Banking: Watchdogs caught napping, Financial Times, 2007-10-29. Retrieved 2008-01-24
- ↑ Calyon Trader Fired for Losses Says He's No Rogue, Bloomberg, 2007-10-10. Retrieved 2009-06-01
- ↑ Former NAB trader pleads guilty, The Age, 2005-06-14. Retrieved 2013-03-16
- ↑ http://www.abc.net.au/worldtoday/content/2006/s1678388.htm
- ↑ Dexia sink $374.49 (€300)m in bond fraud: a mere drop in the ocean
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Procter & Gamble's Tale of Derivatives Woe, International Herald Tribune, 1994-04-14. Retrieved 2008-01-24
- ↑ City gripped by mystery of the phantom copper dealer, The Times, 2005-11-15. Retrieved 2008-01-24
- ↑ Copper bottom, The Observer, November 20, 2005
- ↑ SFO probes NatWest black hole, Daily Telegraph, 1997-06-27. Retrieved 2008-01-24
- ↑ 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
- ↑ http://asia.news.yahoo.com/rtrs/20100629/tbs-hqbank-7318940.html, Reuters, 2010-06-29
- ↑ Rogue Wheat Trader Blamed for $141 Million Loss, NYTimes.com, 2006-02-28. Retrieved 2008-03-03
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Croat trader puts bank in $109.87 (£70)m crisis, Daily Telegraph, 2003-03-24. Retrieved 2008-01-24