List of trading losses

The following contains a list of trading losses of the equivalent of USD100 million or higher. Trading losses are the amount of principal losses in an account.[1] 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.

This list is incomplete; you can help by expanding it.
# Nominal Amount Lost USD FX Rate at time of loss[2] USD Equivalent at time of loss USD Inflation to 2007[3] 2007 USD Amount Lost Country Company Source of Loss Year Person(s) associated with incident
1 USD 9 bn1USD 9 bn-3.7%USD 8.67 bn United StatesMorgan Stanley[4] Credit Default Swaps2008 Hubler, HowieHowie Hubler
2 $6.12 (EUR 4.9) bn0.679USD 7.22 bn-3.7%USD 6.95 bn FranceSociété Générale[5] European Index Futures2008 Kerviel, JérômeJérôme Kerviel
3 USD 6.5 bn1USD 6.50 bn2.8%USD 6.69 bn United StatesAmaranth Advisors[6] Gas Futures 2006 Hunter, BrianBrian Hunter
4 USD 4.6 bn1USD 4.6 bn27.2%USD 5.85 bn United StatesLong Term Capital Management[7] Interest Rate and Equity Derivatives 1998 Meriwether, JohnJohn Meriwether
5 USD 5.80 bn1USD 5.80 bn-7.0%USD 5.80 bn United KingdomJPMorgan Chase[8] Credit default swaps 2012 Iksil, BrunoBruno Iksil
6 JPY 285 bn108.78USD 2.62 bn32.1%USD 3.46 bn JapanSumitomo Corporation[9] Copper Futures 1996 Hamanaka, YasuoYasuo Hamanaka
7 BRL 4.62 bn1.833 USD 2.52 bn-3.7%USD 2.43 bn BrazilAracruz[10][11] FX Options 2008 Zagury, IsacIsac Zagury, Rafael Sotero
8 USD 1.7 bn[12]1USD 1.7 bn39.9%USD 2.38 bn United StatesOrange County[13] Leveraged bond investments 1994 Citron, RobertRobert Citron
9 DEM 2.63 bn1.655USD 1.59 bn43.5%USD 2.28 bn GermanyMetallgesellschaft[14] Oil Futures 1993 Schimmelbusch, HeinzHeinz Schimmelbusch[15]
10 JPY 166 bn111.08USD 1.49 bn43.5%USD 2.14 bn JapanShowa Shell Sekiyu [16][17] FX Forwards 1993
11 JPY 1536 bn102.18USD 1.50 bn39.9%USD 2.09 bn JapanKashima Oil[17] FX Forwards 1994
12 USD 2 bn1USD 2 bn-8.5%USD 1.83 bn United KingdomUBS[18] Equities ETF and Delta 1 2011 Adoboli, KwekuKweku Adoboli
13 HKD 14.7 bn7.786USD 1.89 bn-3.7%USD 1.82 bn ChinaCITIC Pacific[19] Foreign Exchange Trading 2008 Yung, FrancesFrances Yung
14 GBP 827 mn0.633USD 1.31 bn36.1%USD 1.78 bn SingaporeBarings Bank[20] Nikkei Futures 1995 Leeson, NickNick Leeson
15 RUB 78.5 bn 38.98 USD 2.01 bn -12.6% USD 1.76 bn  Russia Transneft[21][22][23][24] Derivatives 2014 Maksim Grishanin, VP Finance
16 USD 1.8 bn1USD 1.8 bn-3.7%USD 1.74 bn United StatesDeutsche Bank[25] Derivatives 2008 Weinstein, BoazBoaz Weinstein
17 $1.75 (EUR 1.4) bn0.923USD 1.29 bn [26]20.4%USD 1.56 bn AustriaBAWAG [27] Foreign Exchange Trading 2000 [26] Flöttl, WolfgangWolfgang Flöttl, Helmut Elsner[27]
18 USD 1.1 bn1USD 1.10 bn36.1%USD 1.50 bn JapanDaiwa Bank[28] Bonds 1995 Iguchi, ToshihideToshihide Iguchi
19 USD 0.80 bn1USD 0.80 bn82.5%USD 1.46 bn United KingdomSoros Fund[29] SP 500 Futures 1987 Soros, GeorgeGeorge Soros
20 $0.94 (EUR 0.75) bn0.679USD 1.10 bn-3.7%USD 1.06 bn FranceGroupe Caisse d'Epargne[30][31] Derivatives 2008 Picano-Nacci, BorisBoris Picano-Nacci
21 BRL 2 bn1.833USD 1.09 bn-3.7%USD 1.05 bn BrazilSadia[10][11][32] FX and Credit Options 2008 Ferreira, AdrianoAdriano Ferreira, Álvaro Ballejo
22 GBP 0.4 bn0.611USD 0.66 bn29.2%USD 0.85 bn United KingdomMorgan Grenfell[33] Shares 1997 Young, PeterPeter Young
23 USD 0.6 bn1USD 0.60 bn39.9%USD 0.84 bn United StatesAskin Capital Management[34] Mortgage-Backed Securities 1994 Askin, DavidDavid Askin
24 $0.75 (EUR 0.60) bn1.371USD 0.82 bn0.0USD 0.82 bn GermanyWestLB[35] Common and Preferred Shares 2007 Breuers, FriedhelmFriedhelm Breuers[36]
25 USD 0.69 bn1USD 0.69 bn15.3%USD 0.80 bn United StatesAIB/Allfirst[37] Foreign Exchange Options 2002 Rusnak, JohnJohn Rusnak
26 DEM 0.47 bn2.587USD 0.18 bn320.6%USD 0.76 bn GermanyHerstatt Bank[38][39] Foreign Exchange Trading 1974 Dattel, DanyDany Dattel
27 CAD 0.68 bn1.066USD 0.64 bn0%USD 0.64 bn CanadaBank of Montreal[40][41] Natural gas derivatives 2007 David Lee, Kevin Cassidy [42][43]
28 USD 0.55 bn1USD 0.55 bn9.8%USD 0.60 bn ChinaChina Aviation Oil (Singapore)[44] Oil Futures and Options 2004 Jiulin, ChenChen Jiulin
29 CHF 0.63 bn1.451USD 0.43 bn27.2%USD 0.55 bn  SwitzerlandUnion Bank of Switzerland[45] Equity Derivatives 1998 Goldstein, RamyRamy Goldstein
30 USD 0.28 bn1USD 0.28 bn82.5%USD 0.51 bn United StatesMerrill Lynch[46] Mortgages (IOs and POs) Trading 1987 Rubin, Howard A.Howard A. Rubin
31 USD 0.28 bn1USD 0.28 bn82.5%USD 0.51 bn United StatesState of West Virginia[47] Fixed Income and Interest Rate Derivatives 1987 Manchin, A. JamesA. James Manchin
32 USD 0.35 bn1USD 0.35 bn39.9%USD 0.49 bn United StatesKidder Peabody[48] Government Bonds 1994 Jett, JosephJoseph Jett
33 USD 0.4 bn1USD 0.40 bn20.4%USD 0.48 bn United StatesManhattan Investment Fund[49] Short IT stocks during the internet bubble 2000 Michael Berger
34 $0.37 (EUR 0.30) bn1.244USD 0.37 bn9.8%USD 0.41 bn AustriaHypo Alpe-Adria-Bank International[50] Foreign Exchange Trading 2004
35 USD 0.35 bn1USD 0.35 bn0.0%USD 0.35 bn United StatesCalyon[51] Credit Derivatives 2007 Bierbaum, Richard "Chip"Richard "Chip" Bierbaum
36 AUD 0.36 bn1.171USD 0.31 bn9.8%USD 0.34 bn AustraliaNational Australia Bank[52] Foreign Exchange Trading 2004 Duffy, LukeLuke Duffy, Gianni Gray, Vince Ficarra & David Bullen[53]
37 $0.37 (EUR 0.30) bn0.895USD 0.27 bn17.1%USD 0.31 bn BelgiumDexia Bank[54] Corporate Bonds 2001
38 USD 0.207 bn1USD 0.207 bn43.5%USD 0.30 bn ChileCodelco[55] Copper, silver, gold futures 1993 Davila, Juan PabloJuan Pablo Davila
39 USD 0.16 bn1USD 0.16 bn39.9%USD 0.22 bn United StatesProcter & Gamble[56] Interest Rate Derivatives 1994 Mains, RaymondRaymond Mains
40 USD 0.2 bn1USD 0.20 bn6.2%USD 0.21 bn ChinaState Reserves Bureau Copper Scandal[57] Copper Futures 2005 Qibing, LiuLiu Qibing[58]
41 GBP 0.09 bn0.611USD 0.15 bn29.2%USD 0.19 bn United KingdomNatWest[59] Interest Rate Options 1997 Papouis, KyriacosKyriacos Papouis
42 USD 0.11 bn1USD 0.11 bn39.9%USD 0.15 bn United StatesCuyahoga County, Ohio[60] Leveraged Fixed Income 1994
43 SEK 1.23 bn7.804USD 0.15 bn-4.8%USD 0.143 bn SwedenHQ Bank[61] Equity Derivatives 2010 Crafoord, FredrikFredrik Crafoord, Mikael König, Patrik Enblad
44 USD 0.14 bn1USD 0.14 bn-3.7%USD 0.13 bn United StatesMF Global[62] Wheat Futures 2008 Dooley, EvanEvan Dooley
45 USD 0.12 bn1USD 0.12 bn-3.7%USD 0.12 bn United StatesMorgan Stanley[63] Credit-index options 2008 Matt Piper
46 USD 0.1 bn1USD 0.10 bn15.3%USD 0.12 bn CroatiaRiječka banka (Rijeka Bank)[64] Foreign Exchange Trading 2002 Nodilo, EduardEduard Nodilo

See also

References

  1. ↑ Doss, Jason R. & Frankowski, Richard S. (2013). “The Practitioner’s Guide to Securities Arbitration.” Chicago: American Bar Association. p. 85. http://www.frankowskifirm.com/chapter-14-damages.html
  2. ↑ "Foreign Exchange Rates (Annual), Federal Reserve Statistical Release G.5A". Annual average for year quoted in table (usually year loss reported). All except AUD, EUR, GBP expressed as currency per USD
  3. ↑ "US Consumer Price Index". Using annual average CPI for year cited to 2007 average.
  4. ↑ Hubler, Howie (2010-03-24). "Howie Hubler of New Jersey: The Return of a Subprime Villain". The New York Observer. Retrieved 2015-06-18.
  5. ↑ Schwartz, Nelson D. (2008-01-25). "A Spiral of Losses by a 'Plain Vanilla' Trader". The New York Times. Retrieved 2008-01-25.
  6. ↑ Brian Hunter, Amaranth, hedge funds, Bloomberg Businessweek, "A Rogues' Gallery of Traders", September 16, 2011. Retrieved 2014-01-09.
  7. ↑ FAILED WIZARDS OF WALL STREET, BusinessWeek, 1998-09-21. Retrieved 2008-03-21
  8. ↑ JPMorgan’s ‘London Whale’ Loss Rises to $3 Billion as Lawsuits Fly, Times Business
  9. ↑ Rogue copper trader draws eight-year prison term, Japan Times, 1998-03-26. Retrieved 2008-03-21
  10. 1 2 "Brazil Stocks Tumble After Aracruz, Sadia Post Currency Losses". Bloomberg.com. 26 September 2008. Retrieved 27 April 2010.
  11. 1 2 "Aracruz Fails to Settle $2.13 Billion Derivative Loss (Update6)". Bloomberg.com. 12 December 2008. Retrieved 27 April 2009.
  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. ↑ Greenwald, John (December 19, 1994). "The California Wipeout". Time Magazine. Retrieved 2007-07-22.
  14. ↑ New York Times, April 5, 1996
  15. ↑ International Harald Tribune, August 10, 2007
  16. ↑ "Showa Shell Sekiyu K.K.". www.fundinguniverse.com. Retrieved 27 April 2009.
  17. 1 2 "Determined Loser. (Kashima Oil)". The Economist. April 16, 1994.
  18. ↑ Adoboli, Kweku (2011-09-15). "Kweku Adoboli arrested". Business Insider. Retrieved 2008-03-25.
  19. ↑ CITIC Pacific warns potential $2 billion forex losses, Reuters October 20, 2008
  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. ↑ How Gref and Tokarev downshifted Russia Moscow-Post.com, February 12, 2016.
  22. ↑ Consolidated financial statements of Transneft JSC prepared in accordance with IFRS for the year ended 31 December 2014
  23. ↑ Consolidated interim condensed financial statements of Transneft JSC prepared in accordance with IFRS for the nine months ended 30 September 2015
  24. ↑ Чистая прибыль "Транснефти" упала в 2,7 раза из-за финансовых расходов | Ведомости
  25. ↑ Deutsche Bank Fallen Trader Left Behind $1.8 Billion Hole
  26. 1 2 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.
  27. 1 2 Groendahl, Boris (July 13, 2007). "Trial begins Monday for suspects in Austrian bank scandal". New York Times. Retrieved 3 May 2010.
  28. ↑ An Unusual Path to Big-Time Trading, New York Times, September 27, 1995. Retrieved 2008-01-24
  29. ↑ 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
  30. ↑ Caisse d'Epargne chairman resigns after trading loss, Reuters, October 19, 2008
  31. ↑ "France nabs trader over Caisse d'Epargne losses". www.politicalscandalnews.com / AFP Global Edition. 30 October 2008. Retrieved May 4, 2010.
  32. ↑ "Perdigão Acquires Sadia". ThePoultrySite.com. 20 May 2009. Retrieved 27 April 2010.
  33. ↑ Morgan Grenfell case study at ERisk.com
  34. ↑ Sad episodes of Global securitisation: The Hall of Shame
  35. ↑ Pressure mounts on WestLB to merge after reporting big trading losses, International Herald Tribune, August 30, 2007
  36. ↑ WestLB ousts top traders after losses, Times Online, April 5, 2007
  37. ↑ Allied Irish Banks case study at ERisk.com
  38. ↑ Markham, Jerry W. (2002). A Financial History of the United States, Volume 1. Armonk, NY: me Sharpe. p. 20.
  39. ↑ Heckinger, Richard; David Marshall; Robert Steigerwald (November 1, 2009). "Financial Market Utilities and the Challenge of Just-In-Time Liquidity" (PDF). Chicago Fed Letter. Chicago: Federal Reserve Bank of Chicago (268a).
  40. ↑ BMO trading loss hits $680M
  41. ↑ Bank of Montreal Raises Trading Loss to C$680 Million
  42. ↑ "U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20811". November 18, 2008. Retrieved 28 April 2009.
  43. ↑ Former bank natgas trader gets $500,000 fine-CFTC Reuters, 6-November-2009
  44. ↑ "Jail term for China Aviation boss", BBC News, 21 March 2006
  45. ↑ The Fall of the UBS: The Reasons Behind the Decline of the Union Bank of Switzerland by Dirk Schutz, ISBN 0-944188-20-6
  46. ↑ Anatomy of a Staggering Loss, New York Times, 1987-05-11, Retrieved 2008-01-24
  47. ↑ Treasurer of West Virginia Retires Over Fund's Losses, New York Times, July 10, 1989. Retrieved 2008-03-22
  48. ↑ In the Matter of Orlando Joseph Jett, U.S. Securities and Exchange Commission, March 5, 2004
  49. ↑ The Bankruptcy Development That Has Wall St. Worried, New York Times, 2007-02-23. Retrieved 2008-01-24
  50. ↑ Banking: Watchdogs caught napping, Financial Times, 2007-10-29. Retrieved 2008-01-24
  51. ↑ Calyon Trader Fired for Losses Says He's No Rogue, Bloomberg, 2007-10-10. Retrieved 2009-06-01
  52. ↑ Former NAB trader pleads guilty, The Age, 2005-06-14. Retrieved 2013-03-16
  53. ↑ http://www.abc.net.au/worldtoday/content/2006/s1678388.htm
  54. ↑ Dexia sink $374.49 (€300)m in bond fraud: a mere drop in the ocean
  55. ↑ "Codelco takes $200 million hit.". Futures (Cedar Falls, Iowa). Futures Magazine Group. 1 March 1994. ISSN 0746-2468. Retrieved 27 April 2009.
  56. ↑ Procter & Gamble's Tale of Derivatives Woe, International Herald Tribune, 1994-04-14. Retrieved 2008-01-24
  57. ↑ City gripped by mystery of the phantom copper dealer, The Times, 2005-11-15. Retrieved 2008-01-24
  58. ↑ Copper bottom, The Observer, November 20, 2005
  59. ↑ SFO probes NatWest black hole, Daily Telegraph, 1997-06-27. Retrieved 2008-01-24
  60. ↑ 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
  61. ↑ http://asia.news.yahoo.com/rtrs/20100629/tbs-hqbank-7318940.html, Reuters, 2010-06-29
  62. ↑ Rogue Wheat Trader Blamed for $141 Million Loss, NYTimes.com, 2006-02-28. Retrieved 2008-03-03
  63. ↑ Craig, Suzanne; Mollenkamp, Carrick (2008-06-19). "Still 'Brutal' at Morgan Stanley". The Wall Street Journal. Dow Jones. p. C1. The trader, identified as Matt Piper, handled credit-index options that can act as insurance against defaults.
  64. ↑ Croat trader puts bank in $109.87 (£70)m crisis, Daily Telegraph, 2003-03-24. Retrieved 2008-01-24
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