Whale Watching on the Trading Floor: Organizational Misbehaviour, Collusive Rogue Trading, and Corporate Culture Deficits in the Investment Banking Industry
By Hagen Rafeld & Peter N. Posch (TU Dortmund University); Sebastian G Fritz-Morgenthal (Frankfurt School of Finance and Management) Recent history reveals a series of rogue traders, jeopardizing their employer’s assets and reputation. There have been a number of instances of unauthorized acting in concert between traders, their supervisors, and/or firm’s senior management, resulting in collusive rogue trading (CRT). In the likes of the Libor manipulation by jointly several traders from major investment banks, CRT cannot be seen only in relation...