212man
2nd Dec 2004, 09:53
BBC world is reporting something about Chna Aviation having an un-accountable 550 million shortfall in its accounts.
Not sure what it's all about; just seen it. They are comparing it to Barings
bear11
2nd Dec 2004, 11:01
China Aviation Oil - a jet fuel supplier. They discovered they have lost USD 550 million from trading in oil derivatives (about the same value of the company!) - it's normal to hedge against oil prices, especially in the current climate, but they obviously did a hell of a lot of speculative trading as well. Whether the speculative trading was sanctioned by management or done on the QT by a Nick Leeson fan is unclear.
lots of money involved ....
http://www.taipeitimes.com/News/worldbiz/archives/2004/12/02/2003213465