What The Papers Say: NatWest fails to escape from its black hole

Most stories on NatWest Market’s recent trading loss admissions mentioned the Barings fiasco or the copper scandal, raising anxieties as to ’yet another black hole in the system’.

Most stories on NatWest Market’s recent trading loss admissions

mentioned the Barings fiasco or the copper scandal, raising anxieties as

to ’yet another black hole in the system’.



The regulatory authorities were portrayed as acting in concert with

NatWest, although no formal request had been received to intervene. The

timing of the discovery could not have been worse. The financial

results, signed off by KPMG and announced only days before, were down on

1995.



The mispricing error led to further questions on controls and inflated

results, which compounded the effects on the share price when it ’headed

south’ after trading resumed on Monday.



NWM said it would ’publicise the findings of their investigations in a

full report’ and ’no clients would be affected’. The media called for

much wider reviews of bonus systems and management checks throughout the

sector. This story has the legs to run for several weeks and may rattle

more cages than one.



Evaluation and analysis by Carma International.



Cuttings supplied by The Broadcast Monitoring Company. ’What The Papers

Say’ can also be found at: http//www.carma.com/carma.



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