NAB scandal highlights op risks in trading, yet again
Melbourne –- Alleged rogue trading in FX options at National Australia Bank (NAB) had been going on for at least a year before the bank’s original estimate, an NAB official said in late January, as the bank revised its final estimate for losses up to A$360 million (US$277 million).
Australia’s largest bank, NAB, has become the latest victim of alleged rogue FX trading. In mid-January, the firm announced that it had uncovered losses of up to A$185 million (US$140 million) from unauthorised trading in FX options during the fourth quarter, before revising those estimates upward nearly two weeks later. Four FX options traders were suspended. Chief financial officer Richard Mckinnon says the vast majority of fictitious trades occurred between October 2003 and mid-January 2004
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