A complaint has now been lodged in a US court alleging that four metal dealers defrauded at least $600m from banks. The banks who stand to lose money are thought to include JP Morgan Chase, Dresdner, Hypovereinsbank and FleetBoston.
Bloomberg quotes Michel Castera, a former director of the French metal trading firm Pechiney Trading SA as saying: 'The documents that could have revealed these deals to be scams were on the desks of all the banks. They either didn't look or didn't understand what they were looking at.'
Bankers Ignorance Allowed $1bn Fraud
Bloomberg reports that bankers at some of Wall Street's biggest firm were thought to have been way out of their depth when they agreed to provide the financing that will result in the loss of up to $1bn due to a metal trading scandal.
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