So, despite all the hoo-hah at the time, the wipe-out of Barings Bank by Nick Leeson was peanuts by comparison.
Top 10 Biggest Trading Losses in History
German metalworking conglomerate Metallgesellschaft AG gambled hard and fell even harder. In 1993 the company lost $1.3 billion after speculating that oil prices would rise. Oil plummeted, however, forcing shareholders to hastily put together a $2 billion rescue package to keep the company from going under bankruptcy. CEO Heinz C. Schimmelbusch, widely respected as a financial wunderkind, was quickly ousted along with most of Metallgesellschaft’s senior management. The company sued Schimmelbusch in the U.S. and Germany, accusing him of breach of duty in the trading losses. The ex-CEO filed a $10 million countersuit in New York Supreme ... (full story)
- Posted: May 11, 2012 4:48pm
- Submitted by:Category: Educational NewsComments: 4 / Views: 2,351