'Rogue trading is still alive and well and actually getting worse'

Trading

Less than 5% of unauthorized financial trading cases may have been reported, said Toshihide Iguchi, whose trading losses led to the 1995 shutdown of Daiwa Bank Holdings' U.S. operations.

Bloomberg News reports that allowing traders to 'walk away with a clean slate' instead of being fired for losses would reduce their incentives to engage in unauthorized trades, the now 63-year-old Kobe, who confessed to amassing $1.1bn of losses in 1995, said in an interview in Hong Kong this week.

Financial institutions including Barings, Daiwa, Societe Generale and JPMorgan have been hit by rogue trading since 1995. The magnitude of losses have grown from Barings trader Nick Leeson’s $1.4bn to the $6.8bn blamed on Societe Generale trader Jerome Kerviel and Bruno Iksil’s $6.2bn losses at JPMorgan.

'Rogue trading is still alive and well and actually getting worse', Iguchi said in the interview.

To access the complete Bloomberg article hit the link below:

Ex-Daiwa Bank Rogue Trader Says Most Unauthorized Trades Hidden

Nomura Leads Japanese Brokerages Higher on Buyback, Earnings 

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