Monthly Top 5 ORX News Losses 2018

  • 6 April 2018

Each month, the ORX News team publish a round-up of the five largest operational risk loss events recorded in the ORX News database.

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The operational risk year to date

Summary of distribution, frequency and severity of ORX News event digests.

April 2018

April's Top 5:

1. Wells Fargo & Company – $1bn

Wells Fargo fined USD 1 billion for auto insurance and mortgage malpractice and risk management deficiencies.

2. Vnesheconombank – $117.2m

Former senior Vnesheconombank manager arrested over misappropriation of USD 117.2 million.

3. UCO Bank – $95.2m

UCO Bank defrauded of INR 6.21 billion by former executive and others in loans obtained with fabricated business data.

4. IDBI Bank – $89.6m

IDBI Bank defrauded of INR 6 billion by senior bank officials in loans issued to companies.

5. Banco de Sabadell – $28m

Account migration disruption may cost TSB GBP 20 million in waived fees and interest payments.

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March's Top 5:

1. Anbang Insurance – $11.9bn

Former Anbang Insurance chairman embezzles CNY 75.25 billion in illegally-raised funds and insurance premium income.

2. Union Bank of India – $48m

Union Bank of India allegedly defrauded of INR 3.14 billion in loan fraud scheme involving eight banks.

3. Bank of America – $42m

Bank of America fined USD 42 million over various fraudulent practices relating to its electronic trading services.

4. Bank of New York Mellon – $35m

BNY Mellon reaches settlement in concession fees valued at USD 35 million over alleged mismanagement of trust assets.

5. State Bank of India – $32.9m

State Bank of India defrauded of INR 2.15 billion in commercial loans made by consortium of banks.

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February's Top 5:

1. Punjab National Bank – $1.98bn

Punjab National Bank discovered it had been defrauded of USD 1.98bn in a letters of undertaking fraud involving bank employees and diamond businessman Nirav Modi.

2. Metlife – $510m

Metlife reinstated USD 510m of pension reserves it had previously released in the 1990s after it found it had failed to make adequate attempts to contact pensioners before releasing the reserves, leading to it missing payments for 25 years.

3. Vanquis – $239m

Provident Financial subsidiary Vanquis reached a GBP 170.8m settlement with the FCA over its failure to disclose the price of an add-on product it sold.

4. BitGrail – $204m

Italian cryptocurrency exchange BitGrail claimed it had lost 17 million Nano coins in a cyberattack.

5. Lending Club – $125m

P2P lender LendingClub agreed to pay USD 125m to settle class action claims it misled investors about its compliance practices.

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January's Top 5:

1.   US Bank – $608m

US Bank has provisioned USD 608 million for investigations by US authorities into the bank’s AML compliance programme in relation to a USD 2 billion fraudulent payday loan scheme by businessman Scott Tucker

2.  Coincheck – $531.9m

Cryptocurrency exchange Coincheck lost around JPY 58 billion worth of NEM coins in a hack on its hot wallet.

3.  Postal Savings Bank of China – $488.5m

Postal Savings Bank of China loses CNY 3.09 billion through embezzlement and fines relating to illegal bill trading, including the misappropriation by internal staff of wealth management funds totalling CNY 3 billion and a fine of CNY 90.5 million by the CBRC.

4.  Rabobank – $372m

Rabobank announced that it provisioned EUR 310 million in Q4 2017 in anticipation of a settlement with the US DoJ over suspected violations of AML regulations.

5.  Pershing Square – $193.8m

Pershing Square Holdings agreed to pay USD 193.8 million to settle two shareholder class action claims that the fund manager, in partnership with Valeant Pharmaceuticals International, engaged in insider trading during the attempted hostile takeover of Botox manufacturer Allergan in 2014.

Download January's Top 5