The bank fraud is among the biggest in history. The accused are said to have fabricated collateral and made up business transactions and eventually amassing hundreds of millions of dollars in loans. It is believed that FleetBoston has lost $70m and that other banks defrauded include JP Morgan Chase, Hypovereinsbank and Dresdner.
Commentators have confirmed that it looks as if some of the banks had not checked out the credibilty of the people involved in the scam and had not verified the transactions they were financing.
US government officials described the scheme as 'astonishing in scope and magnitude.'
US Traders Arrested Over $1bn Fraud
Reuters reports that four New Jersey metal traders have been arrested for defrauding a number of banks around the world out of around $1bn.
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