In the wake of JPMorgan’s ill-conceived hedging strategy, which cost the bank its sterling reputation along with $2 billion and counting, Advanced Trading decided to highlight some of Wall Street’s worst bets ever.
May 21, 2012
9. Toshihide Iguchi, Daiwa Bank
Over an 11-year period starting in 1983, the former Daiwa Bank trader made more than 30,000 unauthorized trades that cost the firm $1.1 billion. He reportedly started the scheme to cover up a $70,000 loss. From there things snowballed for Iguchi, whose attempts to cover his tracks instead metastasized. His first bad bet to make up for prior losses led to a $100,000 loss. Within a year of launching his foolish scheme he was on the hook for $30 million. Five years in he was in the hole by $200 million. A decade into web of unauthorized trades, Iguchi had lost $900 million. He served a four-year prison term for his crimes.
