NAB losses twice that forecasted
National Australia Bank (NAB) said today that losses resulting from a rogue trading scandal were twice as high as forecast at AU$360m (€222m).
NAB, which is National Irish bank's parent company, suspended four staff in January over the unauthorised foreign currency trading and originally cited losses of AU$185m (€114m).
The AU$360m figure is below the fears of investors, who had feared a potential repeat of the Barings Bank collapse.
However investors and analysts are concerned about the bank's risk-management practices that let the rogue trading occur in the first place.
NAB, the police and regulators are still investigating the affair.
NAB, which is Australia's largest bank, said the traders made 'fictitious' trades to conceal losses after unsuccessfully betting that the Australian and New Zealand currencies would fall against the US dollar.
Three of the traders were based in Melbourne with one in London.
