As police in London collar a man, Kweku Adoboli, in connection with alleged $2bn in maverick trading losses at UBS, we take a look back at some of the most catastrophic rogue traders in recent history…
Culprit: Jerome Kerviel
When: January 2008
Institution: Societe Generale
Rogue activity: Convicted for forgery, breach of trust and unauthorized use of the institution’s computers. Kerviel was sentenced to a three years in prison by a French court in October 2010.
Culprit: Brian Hunter
When: Spring 2006
Institution: Amaranth Advisors
Location: Greenwich, Connecticut
Rogue activity: The Commodity Futures Trading Commission charged Amaranth and Hunter of attempting to manipulate gas futures prices. Amaranth collapsed after Hunter’s punt on gas futures went catastrophically wrong.
- Want more City coverage? Try Elliot Wilson’s piece: The Aftermath – what the ICB report means for London businesses
Culprit: Yasuo Hamanaka
When: Summer 1996
Institution: Sumitomo Corp
Rogue activity: Unauthorised copper trades, led by Hamanaka, who received an eight-year prison sentence.
Culprit: Nick Leeson
When: February 1995
Rogue activity: Out of control derivatives trading, which led to Barings’ legendary downfall.
When: Today (September 15)
Location: London (unconfirmed)
Rogue activity: City of London police arrest a man in his thirties, Kweku Adoboli, on September 15 “on suspicion of fraud by abuse of position”. UBS shares fall 8 per cent on the announcement that the bank is investigating rogue trading activity.