Top 10 Rogue Traders

| Posted in Crime

A rogue trader is a trader who acts independently of others – and, typically, recklessly – usually to the detriment of both the clients and the institution that employs him or her. In most cases this type of trading is high risk and can create huge losses.

“Since the average dealer now sits at a desk straight out of the Space Shuttle – and in many cases is relatively inexperienced and working under considerable pressure – mistakes are inevitable.

In May last year, London’s FTSE 100 index dropped by more than 2%, after a trader typed £300m, instead of £30m, while selling a parcel of shares.

In 1998, in the biggest incident of its kind ever, a Salomon Brothers trader mistakenly sold £850m-worth of French government bonds, when he carelessly leaned on his keyboard.

And at the end of 2001, shares in Exodus, a bankrupt internet firm, jumped by 59,000% when a rogue trader accidentally bid $100 for its shares, at a time when its value was 17 cents.” (BBC)

This is a list of the top 10 rogue traders, in no particular order.


Rogue trader Jerome Kerviel was a quiet loner, whose disastrous deals on the European markets cost his bank a massive £3.5 billion. The more money 31-year-old Kerviel lost the more he gambled – which would have earned him the title of an incompetent mug in conventional betting circles. But this gambler’s losses were on an epic scale – dwarfing the £700 million fraud by British trader Nick Leeson, who broke Barings Bank in London in 1995.

While some branded Kerviel an idiot, one of France’s top bankers dubbed him a “genius of fraud” for the way he had managed to cover his tracks and bypass his bank’s checks. In a breathtaking understatement, one of Kerviel’s bosses at the French bank Societe Generale said he was “not one of our stars”. His huge losses on the Delta One trading desk not only cost his bank a mega-fortune, they were blamed for sending share prices crashing around the world.

Ironically, Kerviel, who earned £70,000 a year, was said to have made nothing personally from his massive scam. An insider at Societe Generale said: “What is completely unbelievable is that this person didn’t do it for his personal benefit. He didn’t get anything from it.” The glamorous world of high finance was a far cry from Kerviel’s private life, which was said to have disintegrated after his father died and his girlfriend dumped him.


The best-known rogue trader is Nick Leeson, who bankrupted British bank Barings in 1995. Barings collapsed after Mr Leeson, the bank’s Singapore general manager of futures trading, lost £860m – then worth $1.38bn – on Asian futures markets, wiping out the bank’s cash reserves.

The company was bought for £1 after being in business for more than 230 years. After going on the run, Mr Leeson was jailed for four years in Singapore’s Changi prison. He was released in 1999 and wrote a bestseller, Rogue Trader, now a movie starring Ewan McGregor.

Mr Leeson is now chief executive of Irish football club Galway United.

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The president of Japan’s Daiwa Bank received a particularly nasty shock on July 13 1995. Toshihide Iguchi, one of its senior US executives, confessed in a 30-page letter that he had lost $1.1bn through unauthorised bond trading.

Like Leeson and Rusnak, Iguchi ran up the losses over several years. Having risen from the back offices to become a trader in 1984, a lack of segregation within his division meant he could hide his losses from his superiors while he tried, and failed, to trade back to profit.

Following his confession, it emerged that he had conducted the cover-up for over a decade, falsifying some 30,000 trading slips. Having once been seen as the golden boy of the department, in 1996 he was jailed for four years and fined $2.6m.

In court, he told the judge that his life was filled with guilt, fear and deception after 11 years trying to recover his losses. Interviewed in jail, Iguchi said he had seen his earlier actions as merely a violation of internal rules. “I think all traders have a tendency to fall into the same trap. You always have a way of recovering the loss”, he told Time magazine.

Daiwa was also penalised heavily. The Federal Reserve ordered it to end all of its operations in America, leading to a sale of most of its US assets in January 2006.


Chinese metals trader Liu Qibing disappeared in 2005 after betting wrongly that copper prices were going to fall and amassing huge losses of 0.2bn USD.

He was thought to be a copper dealer for the Chinese State Reserve Bureau at the London Metals Exchange. However, the Chinese State Reserve Bureau denied Mr Liu’s existence – despite LME traders saying they knew him as China’s main copper trader.


In 2002, US currency trader John Rusnak was charged with covering up $691m (£474m) of trading losses so that he could boost his own earnings. He was indicted by a federal grand jury on charges of bank fraud, false entry in bank records and aiding and abetting.

The indictment followed a four-month investigation into trading at Allfirst Financial, a subsidiary of Allied Irish Bank (AIB), from 1997 to 2001. Prosecutors said the trader did not actually profit from the trading losses, mostly on the Japanese yen.

He racked up and hid losses of $691m while leading a bizarre double life. Regarded as a quiet and unassuming family man, he invented aliases and fabricated documents to cover up a growing financial hole from bad bets on currencies, particularly Japanese yen.

The FBI described the case as “the largest bank fraud in the US in the last decade.”

 69960 Copy Of Yasuo Hamanaka

Less well-known, but financially large was the £1.3bn blown away by Yasuo Hamanaka, a metals trader at Japanese conglomerate Sumitomo. Mr Hamanaka, known as Mr Five Per Cent on account of his share of the world copper market, was jailed for eight years in 1996 after admitting to a 10-year career of unauthorised dealing. He had forged the signatures of two of his superiors in letters written to foreign dealers.

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Peter Young was a fund manager at City bank Morgan Grenfell, which was later acquired by Deutsche Bank. In 1996, Mr Young was revealed to have bilked £220m from the funds he ran, thanks to a series of unauthorised investments he concealed.

The case returned to the headlines when Mr Young appeared at City of London Magistrates’ Court wearing a woman’s jumper and dress – and was eventually found unfit to stand trial.

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Brian Hunter was a Canadian based natural gas trader for the now closed Amaranth Advisors hedge fund. Amaranth, which had over $9 billion in assets, collapsed in 2006 after Hunter’s gamble on natural gas futures market went bad.

Amaranth and Hunter have been accused by the Commodity Futures Trading Commission of conspiring to manipulate natural gas prices.


A Mizuho Securities trader sold 610,000 shares in job recruiting company J-Com Co. for 1 yen apiece, instead of an intended sale of 1 share at 610,000 yen. Mizuho said it was unable to cancel the order, causing it to lose about $340 million. The mistake was attributed to the “fat-finger” syndrome, shorthand for gaffes made when traders hit the wrong button on a keyboard and lose a bundle.

The Tokyo stock exchange later acknowledged that a glitch in its system made it impossible to cancel the trade. Mizuho and the exchange have discussed sharing some of the losses, but have so far failed to reach an agreement.

Silver Coins

Nelson Bunker Hunt and William Herbert Hunt bought more than 100 million ounces of silver bullion in 1979 and 1980, causing silver prices to soar to a record of more than $50 an ounce before a sharp plunge.

After the crash, the brothers were left with silver obligations of $1.75 billion and a silver hoard of 59 million ounces valued then at $1.2 billion, indicating a loss of $550 million. The Hunts, whose fortune was once estimated at $6 billion, filed for bankruptcy protection in 1988.


While Brown is not a rogue trader, his catastrophic blunder in sales of gold earns him a mention here. While acting as the Chancellor of the Exchequer in the United Kingdom, Between 1999 and 2002, Brown sold 60% of the UK’s gold reserves at $275 an ounce. It was later attacked as a “disastrous foray into international asset management” as he had sold at close to a 20-year low. He pressured the IMF to do the same, but it resisted. The gold sales have earned him the pejorative nickname ‘Golden Brown’, after the song by The Stranglers. Since then the price of Gold has almost trebled, meaning the decision cost the taxpayer an estimated £2 billion. Several Asian countries including China are named by an insider as having bought the gold “on the cheap” from the Treasury. The Chinese may have made more than £1 billion from Brown’s botched sell-off. [Source]

Contributor: Fritha

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This Young Couple Is Driving When They Notice Something In The Road. What They Do Next Is Great.

| Posted in Accessories
Share what this awesome couple did with others if you found it inspiring!

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And then there were seven: FBN drops Paul, Fiorina from main #GOPDebate

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Looks like fans of Rand Paul or Carly Fiorina willbe disappointed this Thursday:

Time to say goodbye?


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6 Reasons Why The Fact That You Hate Change Will Destroy Your Life

| Posted in Accessories

Nick DriverNick Driver

Nick Driver

When something is good or bad, people will more often than not focus entirely on the bad. Take change, for example: Change can, absolutely, be positive, but, unfortunately, because it also has the potential to be negative, we’re thrown into defensive mode, wanting to avoid change altogether.

But you can’t avoid change; you can, however, hate it. The problem with hating change is that your entire life is filled with it. Your life is filled with change, so hating change fills your life with hatred.

You can’t avoid change and you can’t allow yourself to hate it, either. What you need to do is learn how to use change to your advantage.

Let’s start by understanding why we feel such disdain for change:

1. Change brings the possibility of worse — and nobody wants worse.

Things may not be spectacular right now… but we sure as heck don’t want them getting any worse. The question is always this: Are you willing to risk your comfort and your current level of happiness and contentment in order to be better off, to be more comfortable?

Some people are willing to take the risk, but most people aren’t. In fact, the older you get, the more risk-averse people tend to become. The older we get, the more afraid we are of losing that which we already have.

We spent so many years building what we now have that we don’t want risk anything crumbling. Unfortunately, this pseudo-stagnancy stops nothing more than our own personal development.

2. Real change requires a change of reality.

Changing your reality is one of the most difficult things a person can do. Imagine your whole world needs to change; where do you even begin?

This is one of the most difficult issues people face when trying to bring a significant change into their lives. The problem is that there’s no one right answer.

Because everyone’s reality is composed differently, what bits need to be altered in what order will vary. Some people say it’s a switch that one day flips — that you jump from one reality to the other.

I find that while some people do experience these “Aha!” moments, to be truly successful, you have to force change. You will have your “Aha!” moments, but you can’t spend your life waiting for the next one.

You need to slowly, but surely, phase into a new reality. The more seamlessly, in my opinion, the better.

3. Human beings only create change for one reason: They need to.

The problem is that we don’t want to need anything. We want to be self-sufficient. We don’t enjoy the idea of relying on anything or anyone other than ourselves.

We are only moved to change when an outside force moves us to. People don’t willingly change major parts of their lives simply out of boredom.

We do because we believe we must. We believe that action is required and, therefore, we act. If we don’t feel that need to act then 99 times out of 100, we won’t. Neediness makes us feel uncomfortable. We want to stay comfortable and stay put.

People hate change because they’re lazy.

4. We fear going after what we want, changing our lives, because we fear that we will fail — and we hate failure.

We fear failing to the point that we eventually fear wanting anything at all. We fear what we see as more inevitable failures. People hate change because it brings risk into their lives.

It brings the possibility of disappointment and hurt egos. It may bring the realization that we aren’t good enough, that there is more work to be done, that our journey still stretches for miles and miles ahead of us.

The wisest individuals understand that failure is a part of life, a part of the game we all play. It’s not failure itself that hurts so much. It’s more of the fact that your wishes are being denied.

You’re going after the change that you want and you aren’t getting it. The harder you try to create that change, and for the longer you pursue that change, the more it will hurt every time you fail.

We hate change because there is so much pain and disappointment associated with it.

5. Change is what reminds us that time is continually passing.

It never slows. It never ceases flowing. Change serves as a reminder to our inevitable end — to our mortality. Ever notice that the older people get, the less they like change? I used to think that it was because they’re set in their ways, but I don’t think that’s really it.

The older you get, the more you hate change because you realize your life is coming to an end. The more the world changes around you, the more you realize that things are not in your control.

You realize that whether you like it or not, you’re leaving this world. Once this fact hits home, we start to grasp on to whatever we can in order to keep our world the way it is.

When things change, it’s the life we know slipping through our fingers like grains of sand.

6. Change is never entirely foreseeable.

It’s the unknown that really shakes us. Accustomed to failure, human beings understand that nothing in life is certain. You can plan all you want, but anomalies do occur. The unexpected, unforeseeable happens. We know that we don’t know, and we hate it.

Human beings are built to calculate future events, altering our actions in order to be best positioned to take advantage of the upcoming changes in our surroundings.

When we conclude that the future is, in reality, incalculable, it scares the crap out of us.

We don’t know what to do because we don’t know what is coming our way. We hate change because we hate not knowing how to be prepared for those changes ahead of time.

Change puts our lives at greater risk.

For More Of His Thoughts And Ramblings, Follow Paul Hudson On Twitter And Facebook.

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Boy In The Street Rocks Out I Will Always Love You

| Posted in Accessories

For some reason, Whitney Houston is still very popular in Asian countries, and her hit single I Will Always Love You is no doubt the favorite song. 

So it’s no surprise that this boy in the streets of some South-Asian country chose Always Love You. What was shocking was how he knocked the song out of the park as if he was a professional singer, and not a kid in sandals singing in the street. 

Why is everyone just standing around? Get this kid on a some Got Talent show right away!


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Titans making late surge for Peyton

| Posted in Accessories!/mortreport/status/179280387019780096

Earlier in the day, all the reports indicated Peyton Manning was down to just three teams. Stunningly, the Tennessee Titans have been able to creep their way back into contention for the future hall of fame quarterback by convincing him to make a visit.

Peyton could like what he sees with the Titans. They have a strong running game and a stud wide receiver in Kenny Britt. However, their weak at the core and their coaching could be a huge turn-off.

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Jim Messina hearts Julia

| Posted in Accessories!/Messina2012/status/198169558341791745

“Republican freak-out”? Is that what it is? Because we could swear that what conservatives have been doing is thoroughly tearing apart the mind-numbingly ridiculous and downright Orwellian Saga of Julia.

Nice cover, though, Jim. Real smooth.

Great coverage of Julia web tool: AND

— Jim Messina (@Messina2012) May 3, 2012

That’s great, Jim, but what about our coverage here at Twitchy? Or this? Or this? Or this? Or this? Or mayhaps this? Want us to keep going? Because we can. There’s certainly plenty more where all that came from.

But what’s this, now? Rut-roh, Jim. Looks like you’re in for another round of Republican freak-outs. Better gird those loins!

@Messina2012 You spelled "mockery" wrong.

— Slublog (@Slublog) May 3, 2012

***Please @Messina2012 PLEASE keep spurting out brilliant campaign ideas like #LIfeOfJulia.. we're having SO much FUN!

— el Sooper (@SooperMexican) May 3, 2012

@jaketapper Freakout? More like a MockOut @JasonBWhitman @Messina2012

— Kathleen McKinley (@KatMcKinley) May 3, 2012

It's like they trained @Messina2012 wrong. He interprets mockery as a panic. The Obama reality distortion field is in full effect.

— Travesham (@Travesham) May 3, 2012

Wow @Messina2012 you really are confused we are not freaking out we are laughing that you think women need Obama @JasonBWhitman

— Marc T Grove (@mtgrove) May 3, 2012

.@Messina2012 Feels "great" to infantilize all women? Creepy. @jaketapper @JasonBWhitman

— jon gabriel (@exjon) May 3, 2012

@Messina2012 You should create another web tool that chronicles how Obama's policies impacted the life of Brian Terry. That'd be a scream!

— True Tourtillott (@DamnTrue) May 3, 2012

@Messina2012 Mocking is the opposite of freaking out, son. Thanks for the insult to women though. @jaketapper @JasonBWhitman

— Christine (@cmdeb) May 3, 2012

You progs are our best ammo source. Keep it coming, champ. #SocialMediaFail RT @Messina2012: I feel GREAT about our Julia web tool

— Alo Konsen (@OhioCoastie) May 3, 2012

I feel AWFUL about your condescending patriarchal desire to make women govt dependent MT @Messina2012: I feel GREAT about our Julia web tool

— C. Whalen Stephens (@CorieWhalen) May 3, 2012

You're a MUCH BETTER web tool than Julia!!! RT @Messina2012: I feel GREAT about our Julia web tool & LOVE the Repub freak-out

— el Sooper (@SooperMexican) May 3, 2012

We should all thank Team Obama led by @Messina2012 for the excellent conservative team building exercises. #Unity

— DrewMTips (@DrewMTips) May 3, 2012

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thankful that he has terrible privacy settings

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thankful that he has terrible privacy settings

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Panda in a Rocking Chair (Video)

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Panda YIng Hua on Rocking ChairPanda YIng Hua on Rocking Chair

Rocking in a chair is fun.Ying Hua, a panda from the Beijing Zoo, knows what I am talking about…

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What is Mitt Romney hiding? DJ Diplo looks into candidate’s trousers

| Posted in Accessories!/diplo/status/249618222813433856

It was Joe Biden who in time of national crisis reassured us the president has a big stick. Then he gave us all the creeps with his talk of knowing eight presidents, “three of them intimately.” Now Diplo, the DJ and producer who has worked with such acts as Beyoncé and Usher, has some inside information on the GOP candidate.

We’ll admit, this does have us rethinking our vote. What other knowledge do you have for us, Diplo?

Also walmart kills babys and eats them

— CATEGORY 6 PLURICANE (@diplo) September 22, 2012

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