Rogue Trader

From time to time, the world of institutional trading is rocked by news of rogue traders making huge losses for their firms, on occasion running into billions of dollars, and in some cases bankrupting their firms. Rogue traders use fraudulent means or flaws in the trading, compliance and tracking systems of their employers to exceed trading limits, hide trades and engage in unauthorised activities. Jerome Kerviel (Societe Generate), Kweku Adoboli (UBS), Nick Leeson (Barings), Joe Jett (Kidder Peabody) and Yasuo Hamanaka (Sumitomo) are among the more notorious rogue traders.