NAB traders admit to exploiting system flaws
30 January 2004 | 4956 views | 0
At least two of the foreign currency traders blamed for A$360 million in losses incurred by the National Australia Bank (NAB) have admitted that they took advantage of flaws in the bank's risk management systems, according to a report by the Australian Financial Review.
The National Australia Bank issued a statement last Tuesday itemising total pre-tax losses from rogue options trading at A$360 million - nearly double the A$185 million estimated loss previuosly announced.
According to the report, two traders have admitted in writing to NAB that they exploited flaws in the bank's systems.
The Australian Financial Review says senior trader David Bullen admitted in an interview that he took advantage of the loopholes and that the flaws extended beyond the back office and risk management systems and included the dealing room accounting system.
In a statement made on Tuesday, NAB chief executive Frank Cicutto admitted the the traders "exploited weaknesses in our internal procedures."