Rogue trader loses Russian bank millions: report
A Russian rogue trader lost his investment bank up to 50 million dollars (36.7 million euros) in risky trades that went wrong in the financial crisis.
By Agencies |
MOSCOW: A Russian rogue trader lost his investment bank up to 50 million dollars (36.7 million euros) in risky trades that went wrong in the financial crisis, the Vedomosti business daily reported on Monday.
Quoting unnamed sources at Renaissance Capital, one of Russia's biggest investment banks, Vedomosti reported that the rogue trader had disappeared.
A source close to the bank's top management put the loss at about 50 million dollars, although chief executive Ruben Aganbegyan said it was only around 10 million dollars.
"He opened positions on blue-chip companies that were above the limits and outside of the controls. The market went down and we quickly found the problem," Aganbegyan was quoted as saying.
He added that the trader was no longer working at the bank.
Russian metals tycoon Mikhail Prokhorov last month bought a 50-per cent stake in Renaissance Capital, which has been shaken by the global financial crisis. The bank has since announced plans for massive international expansion.
Quoting unnamed sources at Renaissance Capital, one of Russia's biggest investment banks, Vedomosti reported that the rogue trader had disappeared.
A source close to the bank's top management put the loss at about 50 million dollars, although chief executive Ruben Aganbegyan said it was only around 10 million dollars.
"He opened positions on blue-chip companies that were above the limits and outside of the controls. The market went down and we quickly found the problem," Aganbegyan was quoted as saying.
He added that the trader was no longer working at the bank.
Russian metals tycoon Mikhail Prokhorov last month bought a 50-per cent stake in Renaissance Capital, which has been shaken by the global financial crisis. The bank has since announced plans for massive international expansion.
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