France’s Largest Bank BNP Paribas Loses $80 Million Due to Trader’s Pre-Vacation Snafu

France’s Largest Bank BNP Paribas Loses $80 Million Due to Trader’s Pre-Vacation Snafu 1
BNP Paribas. Image from Shutterstock.

According to multiple sources, BNP SA, known by many as the largest bank in France, reportedly made a loss of $80 million in derivative trades connected to the United States.

The sources confirmed that Antoine Lours, the Head of U.S index trading at BNP, is yet to return to his position at the bank. Lours has been away on vacation since Christmas when he initiated trades on the S&P 500 Index.

Increasing tensions between the United States and China over tariffs and trade disputes caused U.S stock prices to slump over the holiday. Although the stocks did regain their ground, the high volatility concerned many traders and investors, causing massive stock selloffs.

U.S. Trading Desk Shutdown

It hasn’t been the perfect start of 2019 for BNP Paribas. In addition to the $80 million lost over trades gone awry, the bank will close down its U.S. commodities derivatives desk. The commodities division consisted of 16 traders who traded commodities such as agricultural products, metals, and energy. The decision to close is in line with an earlier decision made by the bank to cease financing oil sands and shale projects.

Coinbase 3

According to an unnamed source, the decision indicates a series of adjustments made by the bank, aiming at protecting its profitability.
Jean Pierre Lambert, Analyst at London-based Keffe, Bruyette & Woods, said:

“The bank seems to be adopting enhanced discipline on costs and profitability at its markets activities.”

Opera Trading Desk

The bank will also be shutting down Opera Trading Capital, its proprietary trading division. The division, which makes risky bets with BNP’s capital, is being shut down after last year’s market volatility saw it struggle to make profits. The business is reportedly funded with over $600 million. The bank is reportedly closing it so its resources can be reallocated to client-focused businesses.

Major Banks Call Grim Results

BNP’s key trading business saw a 10% drop in revenue over three-quarters of 2018, while Citigroup Inc. also reported a 21% drop in trading fixed income, commodities and currency on Monday. JPMorgan Chase &Co. followed on Tuesday, claiming that its trading business was greatly affected by “challenging market conditions.”

France’s Largest Bank BNP Paribas Loses $80 Million Due to Trader’s Pre-Vacation Snafu 2
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 48,097.00
ethereum
Ethereum (ETH) $ 3,620.46
cardano
Cardano (ADA) $ 2.46
tether
Tether (USDT) $ 1.01
binance-coin
Binance Coin (BNB) $ 426.93
xrp
XRP (XRP) $ 1.11
solana
Solana (SOL) $ 156.11
polkadot
Polkadot (DOT) $ 35.14
dogecoin
Dogecoin (DOGE) $ 0.241736
usd-coin
USD Coin (USDC) $ 1.00
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 48,097.00
ethereumEthereum (ETH)
$ 3,620.46
tetherTether (USDT)
$ 1.01
bitcoin-cashBitcoin Cash (BCH)
$ 638.19
litecoinLitecoin (LTC)
$ 190.25
bitcoinBitcoin (BTC)
40.678,28
ethereumEthereum (ETH)
3.062,02
tetherTether (USDT)
0,854213
bitcoin-cashBitcoin Cash (BCH)
539,75
litecoinLitecoin (LTC)
160,90
bitcoinBitcoin (BTC)
34,667.12
ethereumEthereum (ETH)
2,609.54
tetherTether (USDT)
0.727983
bitcoin-cashBitcoin Cash (BCH)
459.99
litecoinLitecoin (LTC)
137.13

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021

Blockchain/Cryptocurrency Questions and Answers

Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin48,207 1.02 % 0.40 % 4.60 %
Ethereum3,629.0 1.07 % 3.15 % 3.78 %
Cardano2.460 0.50 % 4.33 % 0.76 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Binance Coin427.62 0.87 % 1.90 % 3.29 %
XRP1.110 0.75 % 0.97 % 0.06 %
Solana155.93 0.82 % 3.93 % 17.65 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2422 0.81 % 1.54 % 5.58 %
USD Coin1.000 0.04 % 0.13 % 0.17 %

bitcoin
Bitcoin (BTC) $ 48,097.00
ethereum
Ethereum (ETH) $ 3,620.46
cardano
Cardano (ADA) $ 2.46
tether
Tether (USDT) $ 1.01
binance-coin
Binance Coin (BNB) $ 426.93
xrp
XRP (XRP) $ 1.11
solana
Solana (SOL) $ 156.11
polkadot
Polkadot (DOT) $ 35.14
dogecoin
Dogecoin (DOGE) $ 0.241736
usd-coin
USD Coin (USDC) $ 1.00