Rogue Copper Trading Leads To $85M Settlement

Law360, New York (April 10, 2006, 12:00 AM EDT) -- The unauthorized actions of a rogue trader may finally stop haunting Swiss investment bank UBS AG, which agreed Friday to pay a Japanese trading company $85 million to end a contentious lawsuit.

Tokyo-based Sumitomo Corp., the third-largest trading company in Japan, sued UBS, as well as Chase Manhattan Bank, for allegedly helping to finance unauthorized trades by Yasuo Hamanaka, a former chief copper futures trader.

In 2005, Hamanaka completed a seven-year jail sentence for hiding more than $2.6 billion in losses that helped plunge the copper...
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