September 20, 2019 / 3:47 PM / a month ago

Factbox: Traders in trouble - how does Mitsubishi's loss stack up?

(Reuters) - Mitsubishi Corp (8058.T) said on Friday a trader at its Singapore-based unit had lost $320 million through unauthorized transactions in crude oil derivatives, and the matter had been reported to the police.

While Mitsubishi says it is the first such loss by Japan’s biggest trading house by revenue, it is dwarfed by trading scandals at other firms over the past 25 years:

Dec. 1995 - Nick Leeson, the original rogue trader, was sentenced to 6-1/2 years in Singapore’s Changi Prison after his stock futures trades in the city-state sank Barings Bank. His losses at the British institution amounted to $1.4 billion. He was released in 1999.

March 1996 - Yasuo Hamanaka, a former Sumitomo Corp (8053.T) trader, was sentenced to eight years for forgery and fraud for amassing $2.6 billion in trading losses. Hamanaka was nicknamed Mr. 5 Percent for the share of the world’s copper he reputedly controlled.

Feb. 2002 - Allied Irish Bank ALBK.I said rogue trader John Rusnak had defrauded its U.S. subsidiary Allfirst of $691 million. Rusnak was sentenced to 7-1/2 years in prison after he admitted devising a scheme that netted him $850,000 in salary and bonuses from 1997 to 2001.

March 2006 - Chen Jiulin, the former chief executive of jet fuel trader China Aviation Oil (CAO), was jailed for four years and three months for his role in concealing $550 million in trading losses from betting the wrong way on oil prices. The losses brought Singapore-listed CAO to the brink of collapse.

July 2006 - David Bullen and Vince Ficarra, former foreign exchange options dealers at National Australia Bank (NAB.AX), were jailed after a 2004 scandal that cost NAB A$252 million ($187 million). They were found guilty of making false trades to safeguard bonuses and hide losses, and joined other former NAB traders Luke Duffy and Gianni Gray in prison.

Feb. 2009 - Alexis Stenfors, former senior trader at Merrill Lynch (BAC.N) in London, was banned for at least five years for deliberately overvaluing his trading positions to hide his losses, forcing the U.S. bank to make a $456 million writedown.

Oct. 2010 - Former Societe Generale (SOGN.PA) trader Jerome Kerviel was sentenced to three years in prison by a Paris court for unauthorized trading and ordered to reimburse the French bank 4.9 billion euros ($6.7 billion). He was found guilty of breach of trust, computer abuse and forgery.

Nov. 2012 - Former UBS trader Kweku Adoboli was convicted and sentenced to seven years in jail for the biggest fraud in British history. He was acquitted of four counts of false accounting. His risk exposure had peaked at $12 billion, while his desk’s authorized limit was $100 million intra-day and $50 million overnight.

Reporting by Carmel Crimmins; Editing by Alexander Smith

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