Betting on the big bucks

Wim Westerman
Additional contact information
Wim Westerman: University of Groningen

No 2025007-EEF, Research Report from University of Groningen, FEB Research Institute (FEBRI)

Abstract: Design/methodology/approach The article studies five bankers scandals related to bankers trades in the post 'Bretton Woods' 1970s2010s era, by way of literature reviews and casual observations. I discuss currency speculations at the regional German Herstatt-Bank in 1974, Asian stock market speculations of 'rogue trader' Nick Leeson at the British Barings Bank in 1995, likewise but way larger activities of 'lone wolf' Jerôme Kerviel at the French giant Société Générale in 2008, manipulations by London-based traders of interest and foreign exchange rate levels around 2010 and the fraudulent Bulgarian OneCoin cryptocurrency pyramid scheme led by Ruja Ignatova (“Dr Ruja†) imploding in 2017. Purpose The study aims to describe exemplary banker trading scandals in a remarkable ‘open global markets’ period and to comprehend major reasons behind them, taking on board the views of reputed scholars and partially going beyond these in terms little or not used before. Findings Accounting systems, compliance (management control with corporate governance) and regulatory loopholes may create banker trading opportunities that negatively and / or positively thrilled individuals and bank trader groups may want to grasp in a culture where free market and free spirit thinking, talking and acting can enfold under favorable economic conditions. It may not pay though.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hdl.handle.net/11370/a9cc6586-f9a7-4652-9fc0-368347e37cc5 (application/pdf)

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:gro:rugfeb:2025007-eef

Access Statistics for this paper

More papers in Research Report from University of Groningen, FEB Research Institute (FEBRI) Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling ().