Lloyd's policy to insure against rogue traders
Tuesday 03 February 1998
A "large New York based financial institution" yesterday became the first bank to buy SVB's "rogue trader" policy, and the syndicate expects more banks to follow suit in the coming months.
"There's been a tremendous interest", said Rupert Villers of SVB, who reckons the syndicate has made about 30 quotes since the policy's inception last October. SVB has handled queries from banks in Japan, Switzerland, the USA, Scandinavia, Holland and the UK.
But be warned, the cost of protecting your bank from a rogue trader is far from negligible. A bank wanting to insure itself against losses of $300m (pounds 190m) would be looking an annual premium of several million dollars, depending on SVB's assessment of its management controls, according to Mr Villers.
SVB said its policy, which was inspired by the antics of Mr Leeson, "provides cover for a loss sustained by a bank as a result of trading which has been concealed by the trader or falsely recorded in the institution's records. The cover extends to commitments in excess of permitted limits, trading in unauthorised instruments and trading with unapproved counterparties".
But although SVB insures against dishonesty, it does not cover incompetence.
Mr Villers said yesterday he expected further sales of the policy this month: "The new product has been targeted at quality institutions with a sound internal control environment.''
- 1 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 2 Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
- 3 Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
Woman opens professional cuddling shop – gets 10,000 customers in first week
Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Revealed: How the world gets rich – from privatising British public services
Rochester aftermath: Sacking of Emily Thornberry will make work of Labour MPs '10 times harder'
iJobs Money & Business
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...
£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...