Encouraged by their past success, some traders are compelled to act recklessly and independently of others – often to the detriment of the firm that employs them, clients and many other unsuspecting individuals. In the trading world, huge profit can be achieved through high risk investments and these what happen when things go wrong:
10. Heinz Schimmelbusch (Loss: $1.59 billion)
Heinz Schimmelbusch was the CEO of a German industrial conglomerate, the Metallgesellschaft AG that lost an estimated $1.59 billion on oil futures speculations. Under his leadership, Metallgesellschaft attempted to expand its business by building gas station through MG Refining and Marketing, its American subsidiary. The company agreed for a fixed price in its long-term contracts believing that the oil price will eventually rise, unfortunately, the declining oil prices in 1993, resulted massive losses on paper. Deutsche Bank responded by liquidating Metallgesellschaft and ousting Schimmelbusch, turning potential losses into real financial losses.