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
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.