BMO has lost nearly $ 630 million in 2007 in a history of overstatement in the value of a portfolio of options. The financial institution had claimed to have been defrauded and not a bad investment strategy.
The U.S. regulatory authorities give due now pursuing David Lee, a former broker BMO and vice-president of the derivatives division, Kevin Cassidy, CEO of the American firm options and qu'Edward O `Connor, President of options, for fraud.
According to the charges by the U.S. Commodity Futures Trading Commission, David Lee had overstated the value of its portfolio of options on natural gas, with the help of the firm options in order to get a bigger bonus.
Depending on what the agency Bloomberg reported, David Lee values attributed to excessive positions for which there was no price on the market. The fraud led BMO to wipe a loss of almost $ 630 million in April 2007, losses that eventually totaled $ 853 million for the year 2007.
No comments:
Post a Comment