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 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 2 Joan Rivers: 'Palestinians deserve to be dead'
- 3 Lady al-Qa’ida: On the trail of Dr Aafia Siddiqui, the world’s most wanted prisoner
- 4 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 5 It's not just the savagery of Isis that is shocking – its weaponry is too
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Joan Rivers: 'Palestinians deserve to be dead'
Sir Paul McCartney makes his stance on Scottish independence known
PM sets out tough new anti-terror measures in response to heightened threat
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
Highly Attractive Salary: Austen Lloyd: BRISTOL - This is a very unusual law c...
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...