CITIBANK'S FOREX LOSSES

Laurent L Jacque

Chapter 3 in Global Derivative Debacles:From Theory to Malpractice, 2015, pp 29-40 from World Scientific Publishing Co. Pte. Ltd.

Abstract: On June 19, 1965, in the heyday of the Bretton-Woods system of fixed exchange rates, the First National City Bank — the second largest American commercial bank with 177 offices in 58 countries—announced a loss of $8 million. The loss was attributed to unauthorized forward speculation on the pound sterling by a Belgian trader in the bank's Brussels branch. The amount of the underlying transactions was rumored to be close to $800 million. For First National City Bank — also known as Citibank — the year 1965 had commenced with a two-for-one stock split and ended with record operating profit of $94 million in spite of the one time loss of $8 million…

Keywords: Derivatives; Debacles; Options; Swaps; Futures; Forwards; Financial Engineering; Market Manipulation; Rogue Traders; Speculation; London Whale (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789814663267_0003 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789814663267_0003 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789814663267_0003

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().