JPMorgan Chase Loss: Top 5 Notorious Rogue Traders

The Huffington Post UK  |  By Posted: 11/05/2012 12:22 Updated: 11/05/2012 12:22

Stock Exchange
Rogue traders have brought down banks and wiped billions of dollars from share prices

Global bank JPMorgan Chase has announced a catastrophic $2bn overnight loss, which is being attributed by some analysts to a London-based trader who goes by nickname 'The White Whale'.

According to the Washington Post, the Whale's identity is French-born trader Bruno Michel Iksil.

Jamie Dimon, the bank's chief executive, attributed the huge losses to "many errors, sloppiness and bad judgement" before revealing that a further $1bn could disappear within the next quarter.

While the actions of the White Whale will significantly damage the bank, rogue traders have in the past brought down banks, swindled investors out of millions of pounds and served vast prison sentences between them.

Most recently, Kweku Adoboli, the British trader, allegedly hid losses of more than £1bn from UBS. He awaits trial in September this year.

Among others, Japanese copper magnate, a French fraudster and a notorious British trader who brought down an entire bank in Singapore stand out as the most serious rogue traders in finance history.

Read through our slideshow below to see some more famous fraudsters...

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  • Jérôme Kerviel, £3.7bn

    In early 2008, French bank Société Générale revealed colossal losses of £3.7bn, by a single trader. Dodgy trades by Kerviel racked up the vast amount of money lost in only three days, through a combination of illegal transactions. Kerviel was sentenced to three years in prison for forgery, unauthorised computer use and breach of trust.

  • Peter Young, £220m

    Young, by comparison to bigger fraudsters, didn't lose too much money - but it was the bizarre nature of his trial and the controversy surrounding it that made him infamous. He was judged unfit to stand trial after being diagnosed as a schizophrenic. Allegedly Young made a number of attempts to castrate himself and decided to live as a woman by the name of Beth. Young made a number of appearances at court dressed as Beth.

  • Nick Leeson, £827m

    English trader Nick Leeson brought down Barings bank in Singapore. Hiding bad trades in secret accounts, Leeson accumulated losses of £827m for the bank over a number of years after making ever more desperate attempts to reclaim the money. After trying to flee the country, Leeson served four years in Singapore for his actions.

  • John Rusnak, £430m

    An employee of the American bank Allfirst, Rusnak engineered a loss of over £400m, or $691m. In 2003, Rusnak was sentenced to 7 years in prison, a small portion of the 30 years he could have faced. Due to Rusnak's actions, the bank had to be sold on and 1,000 employees lost their jobs. <em>Pictured: Group CE Michael Buckley announces to a press conference in 2002 the actions the bank was forced to take after Rusnak's losses </em>

  • Yasuo Hamanaka, £1.6bn

    Japanese copper magnate Hamanaka was jailed for eight years in 1998 for unauthorised trading. Hamanaka had been trading illegally for almost a decade.

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