Citigroup facing loss of at least £40m after one of its London bankers made ‘fat finger’ mistake while working from home
Citigroup is facing a loss of at least £40m after one of its London bankers made a ‘fat finger’ mistake while working from home.
The Wall Street giant has since put the employee on leave as it reviews the error, Bloomberg reported.
The trader accidentally added an extra zero to a trade in Swedish stocks last month, which triggered a ‘flash crash’ and wiped as much as £240billion off the value of the market.
Hitting the wrong button: Citi said it was still adding up the losses from the mistake, but had so far determined that it was down to human error
Citi said it was still adding up the losses from the mistake, but had so far determined that it was down to human error rather than the fact that the trader was working from home.
Fat finger mistakes, caused by a trader hitting the wrong button, can be costly.
When a large trade is placed, this can prompt other investors and automated systems to copy the move, thinking that someone has spotted something they haven’t.
This in turn causes prices to fall even further, creating a snowball effect.
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