There is only so much a bank can do to prevent something like this happening. And once rogue traders elude the in-house regulations, the only option is to hope that the bank can swallow the loss.
Insurance has rarely helped much. Some policies already exist to cover fraud and professional indemnity, such as when a bank is sued by a client, but these would hardly ever apply to losses caused by unauthorized trading. This has caused senior bankers some sleepless nights.
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