NAB FX losses could reach $600 million
(20 January 2004 – Australia) National Australia Bank has admitted initial investigations into the bank’s unauthorised foreign currency trading have revealed losses will surpass its original estimate of A$180 million.
The bank said that as things currently stood, it estimated its pre-tax loss was $185 million.
In a statement to the ASX, NAB chief executive Frank Cicutto said there was a "very low probability that the total losses will be as high as market speculation of $600 million".
Cicutto said NAB was undertaking a market revaluation of the remaining portfolio to ensure it conformed to the bank’s policies.
"Our initial view indicates that this revaluation will lead to additional losses," Cicutto said.
Cicutto, who initially kept a low profile following the revelations of the bank’s rogue trading losses, said foreign currency options would continue to be part of NAB’s markets business.
The bank’s share price dropped almost 10 percent in the wake of the statement.
The bank has engaged PricewaterhouseCoopers to assist it with a full investigation into how its internal risk management procedures failed to shine a light on the four traders’ activities.
The Australian Federal Police and the Australian Prudential Regulation Authority (APRA) are also conducting inquiries into NAB’s foreign currency options trading.
In a statement to the ASX, NAB chief executive Frank Cicutto said there was a "very low probability that the total losses will be as high as market speculation of $600 million".
Cicutto said NAB was undertaking a market revaluation of the remaining portfolio to ensure it conformed to the bank’s policies.
"Our initial view indicates that this revaluation will lead to additional losses," Cicutto said.
Cicutto, who initially kept a low profile following the revelations of the bank’s rogue trading losses, said foreign currency options would continue to be part of NAB’s markets business.
The bank’s share price dropped almost 10 percent in the wake of the statement.
The bank has engaged PricewaterhouseCoopers to assist it with a full investigation into how its internal risk management procedures failed to shine a light on the four traders’ activities.
The Australian Federal Police and the Australian Prudential Regulation Authority (APRA) are also conducting inquiries into NAB’s foreign currency options trading.
Subscribe