City Rogue Trader Arrested

As I mentioned here, I was a Bank's broker when I first entered the insurance market, so headlines like this always catch my attention.

There have now been so many losses in excess of $1bn that it would be easy to become blasé about them   but they still take my breath away.   Trouble is (and to explain why I should get out more), I also wonder how this loss will end up being dealt with by insurance?

Depending on the wording used for this bank, they may or may not have coverage - and regardless of the wording, I expect they they will expect to be covered.  I doubt there will be anything so old-fashioned as a two part definition of dishonesty, where there has to be both the manifest intent to cause the loss and a gain for the perpetrator but you never know...

One to watch.