Large losses due to unauthorized trading… Reuters

September 20, 2019 by Jim Colburn Leave a Comment

I try to highlight these stories for learning purposes and I am still shocked when they happen… Here is Reuters:

“Mitsubishi Corp (8058.T), Japan’s biggest trading house by revenue, said on Friday a trader at its Singapore-based unit has lost $320 million through unauthorized transactions in crude oil derivatives, and the matter has been reported to the police.”

And this:

”It is the first loss of its kind in Mitsubishi’s history, a company spokesman told Reuters.

It could be the biggest loss in oil markets since China’s Sinopec Corp (600028.SS) said last year it had lost about $700 million on crude hedging…

The PDS employee, who handled crude oil trades for China, “was discovered to have been repeatedly engaging in unauthorized derivatives transactions and disguising them to look like hedge transactions since January of this year,” Mitsubishi said in a statement.“

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