Bloomberg News

Credit Suisse Said to Dismiss London Trader Over $6 Million Loss

November 01, 2013

Credit Suisse London Headquarters

A pedestrian passes the U.K. headquarters of Credit Suisse Group AG at the Canary Wharf business and shopping district in London. Photographer: Chris Ratcliffe/Bloomberg

Credit Suisse Group AG (CSGN), Switzerland’s second-biggest bank, dismissed a London trader saying that he lost $6 million on unauthorized transactions, according to a person briefed on the situation.

Rohit Jha, who traded exchange-traded funds, was dismissed on Oct. 28 and his supervisor, Matthew Tagliani, has been suspended due to the losses, which occurred in December, said the person, who asked not to be identified because personnel matters are confidential. The Zurich-based bank notified regulators promptly and has been cooperating with them, said Jack Grone, a spokesman.

“No clients were impacted,” Grone said yesterday. “We are confident the trader acted alone and that the matter has been contained.”

Jha and Tagliani didn’t reply to requests for comment sent to their Credit Suisse e-mail addresses and the bank declined to provide alternate contact details. Tagliani didn’t reply to a message sent to him through LinkedIn.

Grone declined to elaborate on the nature of the unauthorized trade, which was first reported yesterday by the Wall Street Journal. Jha joined Credit Suisse in 2009, U.K. regulatory records show.

The loss amounts to a fraction of the Swiss company’s profit. Credit Suisse’s investment bank took in about $30 million of revenue per day in the third quarter, according to its website.

UBS AG, Switzerland’s biggest bank, lost $2.3 billion on unauthorized trades in 2011 by Kweku Adoboli, an ETF trader in London. He was sentenced to seven years in jail.

To contact the reporter on this story: Zeke Faux in New York at zfaux@bloomberg.net

To contact the editor responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net


Monsanto vs. GMO Haters
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus