Mitsubishi lost $ 320 million due to transactions of one traderSeptember 22, 2019
The reason for the losses was unauthorized transactions in the oil market, which were carried out by an employee of the Singapore branch of the company. According to a spokesman for Mitsubishi, this is the first such loss in the company’s history.
Petro-Diamond Singapore (PDS), Singapore’s Mitsubishi division, incurred losses of approximately $ 320 million from the unauthorized trade in crude oil. This is stated in a statement on the company’s website.
According to Mitsubishi, a PDS employee who traded in crude oil for China, since January 2019, without the knowledge of management, he has repeatedly “participated in transactions with derivatives and disguised them as hedging operations.” In doing so, he manipulated the internal data of the PDS.
According to the company, the main losses from employee actions began in July, amid falling crude oil prices. PDS found that he conducted unauthorized transactions in mid-August. The company began an investigation. On September 18, the employee was fired, and the PDS filed a complaint against him with the police.
Mitsubishi continues to calculate the total amount of losses from employee actions.
A spokesman for the Japanese company told Reuters that it was “the first such loss in the history of Mitsubishi.”
The agency also recalls that last year, the Chinese corporation Sinopec reported a loss of $ 700 million due to transactions with hedging risks in the oil market.
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