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The following contains a list of trading losses of the equivalent of USD100 million or higher. 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.

# Nominal Amount Lost USD FX Rate at time of loss[1] USD Equivalent at time of loss USD Inflation to 2007[2] Real Amount Lost Country Company Source of Loss Year Person(s) associated with incident
1 USD 9 bn1USD 9 bn-3.7%USD 8.67 bn23x15px United StatesMorgan Stanley[3] Credit Default Swaps2008 Hubler, HowieHowie Hubler
2 EUR 4.9 bn1.473USD 7.22 bn-3.7%USD 6.95 bn23x15px FranceSociété Générale[4] European Index Futures2008 Kerviel, JérômeJérôme Kerviel
3 USD 6.5 bn1USD 6.50 bn2.8%USD 6.69 bn23x15px United StatesAmaranth Advisors[5] Gas Futures 2006 Hunter, BrianBrian Hunter
4 USD 5.80 bn1USD 5.80 bn-7.0%USD 5.80 bn23x15px United KingdomJPMorgan Chase[6] Credit default swaps 2012 Iksil, BrunoBruno Iksil
5 USD 4.6 bn1USD 4.6 bn27.2%USD 5.85 bn23x15px United StatesLong Term Capital Management[7] Interest Rate and Equity Derivatives 1998 Meriwether, JohnJohn Meriwether
6 JPY 285 bn108.78USD 2.62 bn32.1%USD 3.46 bn23x15px JapanSumitomo Corporation[8] Copper Futures 1996 Hamanaka, YasuoYasuo Hamanaka
7 BRL 4.62 bn1.833 USD 2.52 bn-3.7%USD 2.43 bn23x15px BrazilAracruz[9][10] FX Options 2008 Zagury, IsacIsac Zagury, Rafael Sotero
8 USD 2 bn1USD 2 bn-8.5%USD 1.83 bn23x15px United KingdomUBS[11] Equities ETF and Delta 1 2011 Adoboli, KwekuKweku Adoboli
9 USD 1.7 bn[12]1USD 1.7 bn39.9%USD 2.38 bn23x15px United StatesOrange County[13] Leveraged bond investments 1994 Citron, RobertRobert Citron
10 DEM 2.63 bn1.655USD 1.59 bn43.5%USD 2.28 bn23x15px GermanyMetallgesellschaft[14] Oil Futures 1993 Schimmelbusch, HeinzHeinz Schimmelbusch[15]
11 JPY 166 bn111.08USD 1.49 bn43.5%USD 2.14 bn23x15px JapanShowa Shell Sekiyu [16][17] FX Forwards 1993
12 JPY 1536 bn102.18USD 1.50 bn39.9%USD 2.09 bn23x15px JapanKashima Oil[17] FX Forwards 1994
13 HKD 14.7 bn7.786USD 1.89 bn-3.7%USD 1.82 bn23x15px ChinaCITIC Pacific[18] Foreign Exchange Trading 2008 Yung, FrancesFrances Yung
13 USD 1.8 bn1USD 1.8 bn-3.7%USD 1.74 bn23x15px United StatesDeutsche Bank[19] Derivatives 2008 Weinstein, BoazBoaz Weinstein
14 GBP 827 bn1.579USD 1.31 bn36.1%USD 1.78 bn23x15px SingaporeBarings Bank[20] Nikkei Futures 1995 Leeson, NickNick Leeson
15 EUR 1.4 bn0.923USD 1.29 bn [21]20.4%USD 1.56 bn23x15px AustriaBAWAG [22] Foreign Exchange Trading 2000 [21] Flöttl, WolfgangWolfgang Flöttl, Helmut Elsner[22]
16 USD 1.1 bn1USD 1.10 bn36.1%USD 1.50 bn23x15px JapanDaiwa Bank[23] Bonds 1995 Iguchi, ToshihideToshihide Iguchi
17 USD .8 bn1USD .8 bn82.5%USD 1.46 bn23x15px United KingdomSoros Fund[24] SP 500 Futures 1987 Soros, GeorgeGeorge Soros
18 EUR 0.75 bn1.473USD 1.10 bn-3.7%USD 1.06 bn23x15px FranceGroupe Caisse d'Epargne[25] [26] Derivatives 2008 Picano-Nacci, BorisBoris Picano-Nacci
19 BRL 2 bn1.833USD 1.09 bn-3.7%USD 1.05 bn23x15px BrazilSadia[9][10] [27] FX and Credit Options 2008 Ferreira, AdrianoAdriano Ferreira, Álvaro Ballejo
20 GBP 0.4 bn1.638USD 0.66 bn29.2%USD 0.85 bn23x15px United KingdomMorgan Grenfell[28] Shares 1997 Young, PeterPeter Young
21 USD 0.6 bn1USD 0.60 bn39.9%USD 0.84 bn23x15px United StatesAskin Capital Management[29] Mortgage-Backed Securities 1994 Askin, DavidDavid Askin
22 EUR 0.60 bn1.371USD 0.82 bn0.0USD 0.82 bn23x15px GermanyWestLB[30] Common and Preferred Shares 2007 Breuers, FriedhelmFriedhelm Breuers[31]
23 USD 0.69 bn1USD 0.69 bn15.3%USD 0.80 bn23x15px United StatesAIB/Allfirst[32] Foreign Exchange Options 2002 Rusnak, JohnJohn Rusnak
24 DEM 0.47 bn2.587USD 0.18 bn320.6%USD 0.76 bn23x15px GermanyHerstatt Bank[33][34] Foreign Exchange Trading 1974 Dattel, DanyDany Dattel
25 CAD 0.68 bn1.066USD 0.64 bn0%USD 0.64 bn23x15px CanadaBank of Montreal[35][36] Natural gas derivatives 2007 David Lee, Kevin Cassidy [37][38]
26 USD 0.55 bn1USD 0.55 bn9.8%USD 0.60 bn23x15px ChinaChina Aviation Oil (Singapore)[39] Oil Futures and Options 2004 Jiulin, ChenChen Jiulin
27 CHF 0.63 bn1.451USD 0.43 bn27.2%USD 0.55 bn20x16px  SwitzerlandUnion Bank of Switzerland[40] Equity Derivatives 1998 Goldstein, RamyRamy Goldstein
28 USD 0.28 bn1USD 0.28 bn82.5%USD 0.51 bn23x15px United StatesMerrill Lynch[41] Mortgages (IOs and POs) Trading 1987 Rubin, Howard A.Howard A. Rubin
29 USD 0.28 bn1USD 0.28 bn82.5%USD 0.51 bn23x15px United StatesState of West Virginia[42] Fixed Income and Interest Rate Derivatives 1987 Manchin, A. JamesA. James Manchin
30 USD 0.35 bn1USD 0.35 bn39.9%USD 0.49 bn23x15px United StatesKidder Peabody[43] Government Bonds 1994 Jett, JosephJoseph Jett
31 USD 0.4 bn1USD 0.40 bn20.4%USD 0.48 bn23x15px United StatesManhattan Investment Fund[44] Short IT stocks during the internet bubble 2000 Michael Berger
32 EUR 0.30 bn1.244USD 0.37 bn9.8%USD 0.41 bn23x15px AustriaHypo Group Alpe Adria[45] Foreign Exchange Trading 2004
33 USD 0.35 bn1USD 0.35 bn0.0%USD 0.35 bn23x15px United StatesCalyon[46] Credit Derivatives 2007 Bierbaum, Richard "Chip"Richard "Chip" Bierbaum
34 AUD 0.36 bn0.854USD 0.31 bn9.8%USD 0.34 bn23x15px AustraliaNational Australia Bank[47] Foreign Exchange Trading 2004 Duffy, LukeLuke Duffy, Gianni Gray, Vince Ficarra & David Bullen[48]
35 EUR 0.30 bn0.895USD 0.27 bn17.1%USD 0.31 bn23x15px BelgiumDexia Bank[49] Corporate Bonds 2001
36 USD 0.207 bn1USD 0.207 bn43.5%USD 0.30 bn23x15px ChileCodelco[50] Copper, silver, gold futures 1993 Davila, Juan PabloJuan Pablo Davila
37 USD 0.16 bn1USD 0.16 bn39.9%USD 0.22 bn23x15px United StatesProcter & Gamble[51] Interest Rate Derivatives 1994 Mains, RaymondRaymond Mains
38 USD 0.2 bn1USD 0.20 bn6.2%USD 0.21 bn23x15px ChinaState Reserves Bureau Copper Scandal[52] Copper Futures 2005 Qibing, LiuLiu Qibing[53]
39 SEK 1230 bn7.804USD 0.15 bn-4.8%USD 0.143 bn23x15px SwedenHQ Bank[54] Equity Derivatives 2010 Crafoord, FredrikFredrik Crafoord, Mikael König, Patrik Enblad
40 GBP 0.09 bn1.638USD 0.15 bn29.2%USD 0.19 bn23x15px United KingdomNatWest[55] Interest Rate Options 1997 Papouis, KyriacosKyriacos Papouis
41 USD 0.11 bn1USD 0.11 bn39.9%USD 0.15 bn23x15px United StatesCuyahoga County, Ohio[56] Leveraged Fixed Income 1994
42 USD 0.14 bn1USD 0.14 bn-3.7%USD 0.13 bn23x15px United StatesMF Global[57] Wheat Futures 2008 Dooley, EvanEvan Dooley
43 USD 0.12 bn1USD 0.12 bn-3.7%USD 0.12 bn23x15px United StatesMorgan Stanley[58] Credit-index options 2008 Matt Piper
44 USD 0.1 bn1USD 0.10 bn15.3%USD 0.12 bn23x15px CroatiaRiječka banka (Rijeka Bank)[59] Foreign Exchange Trading 2002 Nodilo, EduardEduard Nodilo

See also Edit

References Edit

  1. Script error Annual average for year quoted in table (usually year loss reported). All except AUD, EUR, GBP expressed as currency per USD
  2. Script error Using annual average CPI for year cited to 2007 average.
  3. Script error
  4. Script error
  5. Brian Hunter, Amaranth, hedge funds, MoneyWeek, 2006-10-06. Retrieved 2008-03-21
  6. JPMorgan’s ‘London Whale’ Loss Rises to $3 Billion as Lawsuits Fly, Times Business
  7. FAILED WIZARDS OF WALL STREET, BusinessWeek, 1998-09-21. Retrieved 2008-03-21
  8. Rogue copper trader draws eight-year prison term, Japan Times, 1998-03-26. Retrieved 2008-03-21
  9. 9.0 9.1 Script error
  10. 10.0 10.1 Script error
  11. Script error
  12. The Effect of the Orange County Bankruptcy on Residential Real Estate Prices, Thomas A. Evans, Chicago Graduate School of Business, November 14, 2006
  13. Script error
  14. New York Times, April 5, 1996
  15. International Harald Tribune, August 10, 2007
  16. Script error
  17. 17.0 17.1 Script error
  18. CITIC Pacific warns potential $2 billion forex losses, Reuters October 20, 2008
  19. Deutsche Bank Fallen Trader Left Behind $1.8 Billion Hole
  20. 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
  21. 21.0 21.1 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.
  22. 22.0 22.1 Script error
  23. An Unusual Path to Big-Time Trading, New York Times, September 27, 1995. Retrieved 2008-01-24
  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
  25. Caisse d'Epargne chairman resigns after trading loss, Reuters, October 19, 2008
  26. Script error
  27. Script error
  28. Morgan Grenfell case study at ERisk.com
  29. Sad episodes of Global securitisation: The Hall of Shame
  30. Pressure mounts on WestLB to merge after reporting big trading losses, International Herald Tribune, August 30, 2007
  31. WestLB ousts top traders after losses, Times Online, April 5, 2007
  32. Allied Irish Banks case study at ERisk.com
  33. Script error
  34. Script error
  35. BMO trading loss hits $680M
  36. Bank of Montreal Raises Trading Loss to C$680 Million
  37. Script error
  38. Former bank natgas trader gets $500,000 fine-CFTC Reuters, 6-November-2009
  39. "Jail term for China Aviation boss", BBC News, 21 March 2006
  40. The Fall of the UBS: The Reasons Behind the Decline of the Union Bank of Switzerland by Dirk Schutz, ISBN 0-944188-20-6
  41. Anatomy of a Staggering Loss, New York Times, 1987-05-11, Retrieved 2008-01-24
  42. Treasurer of West Virginia Retires Over Fund's Losses, New York Times, July 10, 1989. Retrieved 2008-03-22
  43. In the Matter of Orlando Joseph Jett, U.S. Securities and Exchange Commission, March 5, 2004
  44. The Bankruptcy Development That Has Wall St. Worried, New York Times, 2007-02-23. Retrieved 2008-01-24
  45. Banking: Watchdogs caught napping, Financial Times, 2007-10-29. Retrieved 2008-01-24
  46. Calyon Trader Fired for Losses Says He's No Rogue, Bloomberg, 2007-10-10. Retrieved 2009-06-01
  47. Former NAB trader pleads guilty, The Age, 2005-06-14. Retrieved 2013-03-16
  48. http://www.abc.net.au/worldtoday/content/2006/s1678388.htm
  49. Dexia sink €300m in bond fraud: a mere drop in the ocean
  50. Script error
  51. Procter & Gamble's Tale of Derivatives Woe, International Herald Tribune, 1994-04-14. Retrieved 2008-01-24
  52. City gripped by mystery of the phantom copper dealer, The Times, 2005-11-15. Retrieved 2008-01-24
  53. Copper bottom, The Observer, November 20, 2005
  54. http://asia.news.yahoo.com/rtrs/20100629/tbs-hqbank-7318940.html, Reuters, 2010-06-29
  55. SFO probes NatWest black hole, Daily Telegraph, 1997-06-27. Retrieved 2008-01-24
  56. 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
  57. Rogue Wheat Trader Blamed for $141 Million Loss, NYTimes.com, 2006-02-28. Retrieved 2008-03-03
  58. Script error
  59. Croat trader puts bank in £70m crisis, Daily Telegraph, 2003-03-24. Retrieved 2008-01-24

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