Mitsubishi unit loses $320m on unauthorised trades
Published on: Saturday, September 21, 2019
By: AFP
TOKYO: Major Japanese trading house Mitsubishi Corp said Friday it was carrying out an investigation after its Singapore-based subsidiary lost $320 million because of unauthorised trades by an employee.In a statement, the firm said the losses involved a local employee of Petro-Diamond Singapore who was hired “to handle its crude oil trade with China”.
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The employee “was discovered to have been repeatedly engaging in unauthorised derivatives transactions and disguising them to look like hedge transactions since January of this year”, the firm said.
A fall in crude prices from July resulted in “large losses”, and the subsidiary began investigating the employee’s work in mid-August, the statement added.
PDS “expects to book a loss of approximately $320 million”, it said.
Mitsubishi Corp said the derivatives position was quickly closed and
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investigations were carried out at the subsidiary and other group companies and in-house departments involved in derivatives trading.
“These investigations confirmed that there are no such problems or risks at present.”
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