In april and may 2012, large trading losses occurred at jpmorgans chief investment office. The risky bets were placed out of the banks london office by a trader named bruno iksil, nicknamed the london whale. Recently, ubs announced that it had terminated a former trader, who was also arrested by british police. 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. Excellent book depicting the real life story of money, greed, banking, financial markets in the world. There is a movie titled rogue trader 1999 starring ewan mcgregor, anna friel based on this book worth watching. Convictions prove elusive in london whale trading case. Trader bruno iksil, nicknamed the london whale, accumulated outsized cds positions in the market. The most notorious rogue traders in history business insider. Its a very small percentage of their book, ilczyszyn says, before lamenting that the last thing the market needs right. P morgan chase, the episode might lead ubs to a restructuring of its investment banking ib business and to. A rogue trader is a trusted imperial servant, given a ship, a crew, a contingent of marines and the right to go wherever they so desire. A 31yearold european equities trader, kweku adoboli, has been arrested in london in.
The words of jpmorgan chases ceo, jamie dimon, as he admitted. I first saw that film in 2008 after i got crushed in the market by being long and averaging down eurusd in october. A rogue trader is an employee authorized to make trades on behalf of their employer subject to certain conditions who makes unauthorized trades. The rule book originally described rogue traders as being freelance explorers employed by the imperium to search for planets outside of the established borders. Thats a lot of money until you remember that it didnt stop the bank from earning a record.
Rogue traders can do extensive damage to the company they work for, as well as the companys executives and share price. Apr, 2017 a pedestrian walks past the offices of jpmorgan chase in london. Rogue trader by nick leeson meet your next favorite book. How i brought down barings bank and shook the financial world. The police in london have arrested a european equities trader, kweku adoboli, in connection with the case, according to a person with direct knowledge of the situation who was not authorized to speak publicly. Ubsrogue trader scandal case solution introduction. It is most often applied to financial trading, when rogue professional traders make unapproved financial transactions.
Polygamousranchkid writes with this snippet from reuters that sounds like a readymade movie script. Ubs was in the process of eliminating a number of jobs to save money on its balance. If you liked rogue trader the movie, then youll love this book. The ubs rogue trader was arrested in london yesterday. I was still early on in my trading career and hadnt really learned that you cant argue with the market. The ethical lessons of rogue trading cfa institute. But jpmorgans trade was not so obviously fraught with risk.
I wonder how this will reopen the debate about the role of computer systems in the trading and the safeguards that are supposed. How i brought down barings bank and shook the financial world leeson, nick, whitley, edward on. It featured ewan mcgregor playing nicholas leeson, who. Truly greed and corruption have always been the destruction of the powerful and mighty. A pedestrian walks past the offices of jpmorgan chase in london. Created by rick priestly, the game was subtitled warhammer 40,000 in order to clearly differentiate it from 2000 ads rogue trooper comic series. Jpmorgan rogue trader losses send chills through markets.
Ubsrogue trader scandal case solution and analysis, hbr. Sep 14, 2011 news services are reporting that a 31yearold etf trader based in london, kweku adoboli, is now under arrest. Nov 26, 2012 london britains financial services authority fined ubs. Gruebels decision to leave a year or so ahead of schedule was not just a response. Kweku adoboli argued that the risks were not taken for his own financial. Marketwatch site logo a link that brings you back to the homepage. There have been many rogue traders in recent history. It is most often applied to financial trading, when rogue professional traders make unapproved financial transactions this activity is often in the grey area between civil and criminal transgression, because the perpetrator is a legitimate. Jamie dimon, the chief executive of jpmorgan chase.
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