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Australia: Watchdog Condemns NAB
Currency System Trading Australia's financial watchdog has said the country's biggest bank put profit before probity, leading to a US$184m (102m) currency trading scandal.
Australia's financial watchdog has said the country's biggest bank put profit before probity, leading to a US$184m (102m) currency trading scandal. National Australia Bank "failed at every level" to implement proper controls on risk management, the regulator said. The inquiry by Australian Prudential Regulation Authority's report is the second to condemn lax controls at NAB. NAB has tried to root out the problem by sacking eight managers and traders.
Book Currency Trading National Australia Bank "failed at every level" to implement proper controls on risk management, the regulator said.
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Beginner Currency Forex The inquiry by Australian Prudential Regulation Authority's report is the second to condemn lax controls at NAB.
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Currency Exchange Trading NAB has tried to root out the problem by sacking eight managers and traders.
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Currency Software Trading APRA said the bank's board had paid lip service to the importance of internal controls but failed to act on its pledges.
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Currency Future Trading 'Profit is king'
Currency Fx Trading "Despite often asserting that risk issues were of such importance that they should be dealt with by the full board, the board paid insufficient attention to risk issues," the APRA found.
Currency Exchange Foreign Instead, the bank suffered from a profits-first culture which led line managers to neglect internal controls and known risk management concerns.
Currency Day Forex Trading "'Profit is king' was an expression frequently heard in our interviews with corporate and institutional banking staff," the report said.
Currency Day Market Trading The bank itself commissioned a previous report by PricewaterhouseCoopers which found that traders exploited loopholes in the bank's systems to conceal heavy losses, which were only uncovered after junior employees raised concerns.
Currency Ireland Trading It argued that NAB had insufficient systems in place to supervise traders and deal with mistakes when they arose.
Course Currency Trading The bank's chairman and chief executive stood down after the rogue trades came to light.
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