Junior trader hid losses in 420 fake trades to avoid disappointing supervisors

A "relatively junior trader" in the London branch of a bank was able to bypass four internal control systems for 20 months and hide over 420 fictitious trades - weaknesses that have now resulted in a £13 million fine on the firm and a ban on the individual.

By Neasa MacErlean

The trades cost US$57.8m to unwind and would have been spotted earlier or prevented if recommendations from internal and external reviews had been effectively followed. The trader was working at home during Covid at the time, and taking on more responsibility to help colleagues in other offices and time zones.