The Most Notorious Rogue Traders In History

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[credit provider=”Vincent Diamante, Flickr” url=”http://www.flickr.com/photos/[email protected]/2255718951″]

Today UBS unexpectedly announced a rogue trading scandal adding yet another blow to the embattled Swiss bank.Kweku Adoboli, 31, was arrested by police in London for his alleged rogue trading scheme that lost UBS a whopping $2 billion. 

Adoboli might be joining a group of other rogue traders who’ve lost their firms a lot of money.

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permalink=”jerome-kerviel-lost-67-billion-for-socit-gnrale-1″
title=”Jerome Kerviel lost $6.7 billion for Société Générale.”
content=”Société Générale’s ‘rogue trader’ Jerome Kerviel lost the French bank approximately $6.7 billion through arbitrage of equity derivatives.

His unauthorised trades racked up a $6.7 billion loss that was revealed in 2008.

In October 2010, he was sentenced to three years in prison.

He’s planning to appeal.”
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permalink=”nick-leeson-lost-13-billion-for-barings-bank-2″
title=”Nick Leeson lost $1.3 billion for Barings Bank.”
content=”Leeson was a derivatives broker at Barings Bank where his unauthorised trading on Nikkei futures accumulated losses of $1.3 billion.

This eventually led to the collapse of the oldest U.K. investment bank.

Leeson moved to Singapore where he enjoyed a lavish lifestyle and made plenty of money for a few months.

For a time, he was able to hide his mounting losses in a special account known as the ‘five eights’ account.

He was eventually caught and sentenced to five years in a Singapore prison in 1995. In prison, he acquired cancer and his wife left him.

He was released in 1999 and now does keynote speeches.”
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[slide
permalink=”yang-yanming-lost-952-million-for-the-china-great-wall-trust-and-investment-corporation-3″
title=”Yang Yanming lost $9.52 million for the China Great Wall Trust and Investment Corporation.”
content=”Yang Yanming, a former securities trader and head of China Great Wall Trust and Investment Corporation, was sentenced to death by a Chinese high court in late 2005 for embezzling millions of dollars.

He refused to reveal the whereabouts of 65 million yuan ($9.52 million) of the misappropriated funds.

He was the first finance executive to receive the death penalty in China.”
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[slide
permalink=”jonathan-bunn-lost-391-million-for-lewis-charles-securities-4″
title=”Jonathan Bunn lost $3.91 million for Lewis Charles Securities.”
content=”Jonathan Bunn worked as a broker at Lewis Charles Securities where he wasn’t allowed to prop trade, but he managed to do it anyway by tricking back office employees by writing out false-deal slips.

Bunn shorted 7 million HSBC shares using Lewis Charles Securities money. His accumulated losses were $3.91 million.

As a result, Bunn was banned from the industry by the Financial Services Authority.

In addition, Lewis Charles laid off some of its employees.”
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permalink=”john-rusnack-lost-691-million-for-allfirst-bank-5″
title=”John Rusnack lost $691 million for Allfirst Bank.”
content=”Rusnack, a currency trader at Allfirst Bank, lost a total of $691 million on his bets.

AIB Group, Allfirst’s parent company, sold the firm to M&T Bank. More than 1,000 employees lost their jobs thanks to Rusnack’s losses.”
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[slide
permalink=”brian-hunter-lost-66-billion-for-hedge-fund-amaranth-6″
title=”Brian Hunter lost $6.6 billion for hedge fund Amaranth.”
content=”Brian Hunter, an ex-trader with the now-defunct Amaranth hedge fund, bet on natural gas futures back in 2006 that caused the fund to lose $6.6 billion.

Earlier this year the U.S. Federal Energy Regulatory Commission fined him $30 million for manipulating gas prices.”
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[slide
permalink=”toshihide-iguchi-lost-11-billion-for-japans-daiwa-bank-7″
title=”Toshihide Iguchi lost $1.1 billion for Japan’s Daiwa Bank.”
content=”In 1995, it was revealed that Japan’s Daiwa Bank suffered a $1.1 billion loss thanks to more than 30,000 unauthorised trades in bonds over a period of 11 years from Iguchi.

He was imprisoned in 1996.”
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permalink=”robert-citron-lost-2-billion-orange-county-california-8″
title=”Robert Citron lost $2 billion Orange County, California.”
content=”In 1994, Robert Citron was Treasurer-Tax Collector for Orange County, California.

As treasurer, Citron used a series of highly-leveraged deals that included repurchase agreements and floating rate notes. At one point he was able to achieve leverage 292%.

The funds he managed were worth around $8 billion, but he was counting on interest rates remaining low or else he stood to lose big time.

Interest rates did rise and as a result, Orange County losses amounted to $2 billion and the county was forced into Chapter 9 bankruptcy.”
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permalink=”yasuo-hamanaka-lost-26-billion-for-sumitomo-9″
title=”Yasuo Hamanaka lost $2.6 billion for Sumitomo.”
content=”Yasuo Hamakana, who was once nick-named ‘Mr. Five per cent’ and ‘Mr. Copper’ because of his aggressive trading style in the copper market, caused Sumitomo to lose $2.6 billion from his unauthorised copper trades on the London Metal Exchange.

As a result of his rogue trade, Hamakana was sentenced to eight years in prison in 1988. He was released in July 2005, a year before his sentence was supposed to end.”
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[slide
permalink=”well-those-trades-werent-so-good-here-are-some-trades-that-made-investors-a-lot-of-money-10″
title=”Well those trades weren’t so good. Here are some trades that made investors a lot of money.”
content=”Check out 14 Career Trades That Made Investors A Ton of Money >>
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