List of trading losses

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The following contains a list of trading losses of the equivalent of USD100 million or higher. Trading losses are the amount of principal losses in an account.[1] Because of the secretive nature of many hedge funds and fund managers, some notable losses may never be reported to the public. The list is ordered by the real amount lost, starting with the greatest.

This list includes both fraudulent and non-fraudulent losses, but excludes losses associated with Bernie Madoff's Ponzi scheme, which is estimated in the $50 billion range, because Madoff did not lose the majority of this money in trading.

# Nominal amount lost USD FX rate at time of loss[2] USD equivalent at time of loss USD inflation to 2007[3] 2007 USD Amount Lost Country Company Source of Loss Year Person(s) associated with incident
1 USD 9 bn 1 USD 9 bn −7.0% USD 9 bn  United Kingdom JPMorgan Chase[4] Credit Default Swaps 2012 Bruno Iksil
2 USD 9 bn 1 USD 9 bn −3.7% USD 8.67 bn  United States Morgan Stanley[5] Credit Default Swaps 2008 Howie Hubler
3 $6.12 (EUR 4.9) bn 0.679 USD 7.22 bn −3.7% USD 6.95 bn  France Société Générale[6] European Index Futures 2008 Jérôme Kerviel
4 USD 6.5 bn 1 USD 6.50 bn 2.8% USD 6.69 bn  United States Amaranth Advisors[7] Gas Futures 2006 Brian Hunter
5 USD 4.6 bn 1 USD 4.6 bn 27.2% USD 5.85 bn  United States Long Term Capital Management[8] Interest Rate and Equity Derivatives 1998 John Meriwether
5 USD 4.1 bn 1 USD 4.1 bn N/A USD 4.1 bn  United States Pershing Square[9] Valeant Pharmaceuticals 2015-2017 Bill Ackman
6 JPY 285 bn 108.78 USD 2.62 bn 32.1% USD 3.46 bn  Japan Sumitomo Corporation[10] Copper Futures 1996 Yasuo Hamanaka
7 BRL 4.62 bn 1.833 USD 2.52 bn −3.7% USD 2.43 bn  Brazil Aracruz[11][12] FX Options 2008 Isac Zagury, Rafael Sotero
8 USD 1.7 bn[13] 1 USD 1.7 bn 39.9% USD 2.38 bn  United States Orange County[14] Leveraged bond investments 1994 Robert Citron
9 DEM 2.63 bn 1.655 USD 1.59 bn 43.5% USD 2.28 bn  Germany Metallgesellschaft[15] Oil Futures 1993 Heinz Schimmelbusch[16]
10 JPY 166 bn 111.08 USD 1.49 bn 43.5% USD 2.14 bn  Japan Showa Shell Sekiyu [17][18] FX Forwards 1993
11 JPY 1536 bn 102.18 USD 1.50 bn 39.9% USD 2.09 bn  Japan Kashima Oil[18] FX Forwards 1994
12 USD 2 bn 1 USD 2 bn −8.5% USD 1.83 bn  United Kingdom UBS[19] Equities ETF and Delta 1 2011 Kweku Adoboli
13 HKD 14.7 bn 7.786 USD 1.89 bn −3.7% USD 1.82 bn  China CITIC Pacific[20] Foreign Exchange Trading 2008 Frances Yung
14 GBP 827 mn 0.633 USD 1.31 bn 36.1% USD 1.78 bn  Singapore Barings Bank[21] Nikkei Futures 1995 Nick Leeson
15 RUB 78.5 bn 38.98 USD 2.01 bn −12.6% USD 1.76 bn  Russia Transneft[22][23][24][25] Derivatives 2014 Maksim Grishanin, VP Finance
16 USD 1.8 bn 1 USD 1.8 bn −3.7% USD 1.74 bn  United States Deutsche Bank[26] Derivatives 2008 Boaz Weinstein
17 $1.75 (EUR 1.4) bn 0.923 USD 1.29 bn [27] 20.4% USD 1.56 bn  Austria BAWAG[28] Foreign Exchange Trading 2000 [27] Wolfgang Flöttl, Helmut Elsner[28]
18 USD 1.1 bn 1 USD 1.10 bn 36.1% USD 1.50 bn  Japan Daiwa Bank[29] Bonds 1995 Toshihide Iguchi
19 USD 0.80 bn 1 USD 0.80 bn 82.5% USD 1.46 bn  United Kingdom Soros Fund[30] SP 500 Futures 1987 George Soros
20 $0.94 (EUR 0.75) bn 0.679 USD 1.10 bn −3.7% USD 1.06 bn  France Groupe Caisse d'Epargne[31][32] Derivatives 2008 Boris Picano-Nacci
21 BRL 2 bn 1.833 USD 1.09 bn −3.7% USD 1.05 bn  Brazil Sadia[11][12][33] FX and Credit Options 2008 Adriano Ferreira, Álvaro Ballejo
22 GBP 0.4 bn 0.611 USD 0.66 bn 29.2% USD 0.85 bn  United Kingdom Morgan Grenfell[34] Shares 1997 Peter Young
23 USD 0.6 bn 1 USD 0.60 bn 39.9% USD 0.84 bn  United States Askin Capital Management[35] Mortgage-Backed Securities 1994 David Askin
24 $0.75 (EUR 0.60) bn 1.371 USD 0.82 bn 0.0 USD 0.82 bn  Germany WestLB[36] Common and Preferred Shares 2007 Friedhelm Breuers[37]
25 USD 0.69 bn 1 USD 0.69 bn 15.3% USD 0.80 bn  United States AIB/Allfirst[38] Foreign Exchange Options 2002 John Rusnak
26 DEM 0.47 bn 2.587 USD 0.18 bn 320.6% USD 0.76 bn  Germany Herstatt Bank[39][40] Foreign Exchange Trading 1974 Dany Dattel
27 CAD 0.68 bn 1.066 USD 0.64 bn 0% USD 0.64 bn  Canada Bank of Montreal[41][42] Natural gas derivatives 2007 David Lee, Kevin Cassidy [43][44]
28 USD 0.55 bn 1 USD 0.55 bn 9.8% USD 0.60 bn  China China Aviation Oil (Singapore)[45] Oil Futures and Options 2004 Chen Jiulin
29 CHF 0.63 bn 1.451 USD 0.43 bn 27.2% USD 0.55 bn   Switzerland Union Bank of Switzerland[46] Equity Derivatives 1998 Ramy Goldstein
30 USD 0.28 bn 1 USD 0.28 bn 82.5% USD 0.51 bn  United States Merrill Lynch[47] Mortgages (IOs and POs) Trading 1987 Howard A. Rubin
31 USD 0.28 bn 1 USD 0.28 bn 82.5% USD 0.51 bn  United States State of West Virginia[48] Fixed Income and Interest Rate Derivatives 1987 A. James Manchin
32 USD 0.35 bn 1 USD 0.35 bn 39.9% USD 0.49 bn  United States Kidder Peabody[49] Government Bonds 1994 Joseph Jett
33 USD 0.4 bn 1 USD 0.40 bn 20.4% USD 0.48 bn  United States Manhattan Investment Fund[50] Short IT stocks during the internet bubble 2000 Michael Berger
34 $0.37 (EUR 0.30) bn 1.244 USD 0.37 bn 9.8% USD 0.41 bn  Austria Hypo Alpe-Adria-Bank International[51] Foreign Exchange Trading 2004
35 USD 0.35 bn 1 USD 0.35 bn 0.0% USD 0.35 bn  United States Calyon[52] Credit Derivatives 2007 Richard "Chip" Bierbaum
36 AUD 0.36 bn 1.171 USD 0.31 bn 9.8% USD 0.34 bn  Australia National Australia Bank[53] Foreign Exchange Trading 2004 Luke Duffy, Gianni Gray, Vince Ficarra & David Bullen[54]
37 USD 0.078 bn 1 USD 0.078 bn 320.4% USD 0.328 bn   Switzerland Lloyds Bank[55] Foreign Exchange Trading 1974 Marc Colombo
38 $0.37 (EUR 0.30) bn 0.895 USD 0.27 bn 17.1% USD 0.31 bn  Belgium Dexia Bank[56] Corporate Bonds 2001
39 USD 0.207 bn 1 USD 0.207 bn 43.5% USD 0.30 bn  Chile Codelco[57] Copper, silver, gold futures 1993 Juan Pablo Davila
40 EUR 0.160 1.1 USD 0.176 bn 0% USD 0.176bn  Germany BNP Paribas Arbitrage Structured Products 2016 Armin S.[58]
41 USD 0.16 bn 1 USD 0.16 bn 39.9% USD 0.22 bn  United States Procter & Gamble[59] Interest Rate Derivatives 1994 Raymond Mains
42 USD 0.04 bn 1 USD 0.04 bn 433.8% USD 0.214 bn   Switzerland United California Bank of Basel[60] Cocoa futures 1970 Paul Erdman
43 USD 0.2 bn 1 USD 0.20 bn 6.2% USD 0.21 bn  China State Reserves Bureau Copper Scandal[61] Copper Futures 2005 Liu Qibing[62]
44 GBP 0.09 bn 0.611 USD 0.15 bn 29.2% USD 0.19 bn  United Kingdom NatWest[63] Interest Rate Options 1997 Kyriacos Papouis
45 USD 0.039 bn 1 USD 0.039 bn 320.4% USD 0.164 bn  United States Franklin National Bank[64] Foreign Exchange Trading 1974 Peter Shaddick
46 USD 0.11 bn 1 USD 0.11 bn 39.9% USD 0.15 bn  United States Cuyahoga County, Ohio[65] Leveraged Fixed Income 1994
47 SEK 1.23 bn 7.804 USD 0.15 bn −4.8% USD 0.143 bn  Sweden HQ Bank[66] Equity Derivatives 2010 Fredrik Crafoord, Mikael König, Patrik Enblad
48 USD 0.14 bn 1 USD 0.14 bn −3.7% USD 0.13 bn  United States MF Global[67] Wheat Futures 2008 Evan Dooley
49 USD 0.12 bn 1 USD 0.12 bn −3.7% USD 0.12 bn  United States Morgan Stanley[68] Credit-index options 2008 Matt Piper
50 USD 0.1 bn 1 USD 0.10 bn 15.3% USD 0.12 bn  Croatia Riječka banka (Rijeka Bank)[69] Foreign Exchange Trading 2002 Eduard Nodilo

See also[edit]

References[edit]

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  2. ^ "Foreign Exchange Rates (Annual), Federal Reserve Statistical Release G.5A". Annual average for year quoted in table (usually year loss reported). All except AUD, EUR, GBP expressed as currency per USD
  3. ^ "US Consumer Price Index". Archived from the original on 2017-12-01. Using annual average CPI for year cited to 2007 average.
  4. ^ JPMorgan’s ‘London Whale’ Loss Rises to $3 Billion as Lawsuits Fly, Time
  5. ^ Hubler, Howie (2010-03-24). "Howie Hubler of New Jersey: The Return of a Subprime Villain". The New York Observer. Retrieved 2015-06-18.
  6. ^ Schwartz, Nelson D. (2008-01-25). "A Spiral of Losses by a 'Plain Vanilla' Trader". The New York Times. Retrieved 2008-01-25.
  7. ^ Brian Hunter, Amaranth, hedge funds, Bloomberg Businessweek, "A Rogues' Gallery of Traders", September 16, 2011. Retrieved 2014-01-09.
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  9. ^ Bill Ackman Lost $7.7 Million Per Day on Valeant Stock, 2017-03-15. Retrieved 2018-02-11
  10. ^ Rogue copper trader draws eight-year prison term, Japan Times, 1998-03-26. Retrieved 2008-03-21
  11. ^ a b "Brazil Stocks Tumble After Aracruz, Sadia Post Currency Losses". Bloomberg.com. 26 September 2008. Retrieved 27 April 2010.
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  13. ^ The Effect of the Orange County Bankruptcy on Residential Real Estate Prices[permanent dead link], Thomas A. Evans, Chicago Graduate School of Business, November 14, 2006
  14. ^ Greenwald, John (December 19, 1994). "The California Wipeout". Time. Retrieved 2007-07-22.
  15. ^ New York Times, April 5, 1996
  16. ^ International Harald Tribune, August 10, 2007
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  18. ^ a b "Determined Loser. (Kashima Oil)". The Economist. April 16, 1994.
  19. ^ Adoboli, Kweku (2011-09-15). "Kweku Adoboli arrested". Business Insider. Retrieved 2008-03-25.
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  22. ^ How Gref and Tokarev downshifted Russia Moscow Post, February 12, 2016.
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  24. ^ Consolidated interim condensed financial statements of Transneft JSC prepared in accordance with IFRS for the nine months ended 30 September 2015
  25. ^ Чистая прибыль "Транснефти" упала в 2,7 раза из-за финансовых расходов | Ведомости
  26. ^ Deutsche Bank Fallen Trader Left Behind $1.8 Billion Hole
  27. ^ a b The trading that generated losses ended in 2000 but the losses were not uncovered until 2006. The USD equivalent shown here is for 2000; it is often quoted as USD 1.9 bn which is the euro amount converted at the 2006 FX rate.
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  42. ^ Bank of Montreal Raises Trading Loss to C$680 Million
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  56. ^ Dexia sink $374.49 (€300)m in bond fraud: a mere drop in the ocean
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  61. ^ City gripped by mystery of the phantom copper dealer, The Times, 2005-11-15. Retrieved 2008-01-24
  62. ^ Copper bottom, The Observer, November 20, 2005
  63. ^ SFO probes NatWest black hole, Daily Telegraph, 1997-06-27. Retrieved 2008-01-24
  64. ^ Franklin National Bank Dismisses Its President New York Times May 14, 1974
  65. ^ Significant Losses Stemming from the Termination of Its SAFE Investment Program Erode County's Previously Substantial Financial Margins Archived 2010-06-09 at the Wayback Machine., Business Wire, Jan 5, 1995. Retrieved 2008-03-22
  66. ^ http://asia.news.yahoo.com/rtrs/20100629/tbs-hqbank-7318940.html, Reuters, 2010-06-29
  67. ^ Rogue Wheat Trader Blamed for $141 Million Loss, New York Times, 2006-02-28. Retrieved 2008-03-03
  68. ^ Craig, Suzanne; Mollenkamp, Carrick (2008-06-19). "Still 'Brutal' at Morgan Stanley". The Wall Street Journal. Dow Jones. p. C1. The trader, identified as Matt Piper, handled credit-index options that can act as insurance against defaults.
  69. ^ Croat trader puts bank in $109.87 (£70)m crisis, Daily Telegraph, 2003-03-24. Retrieved 2008-01-24