Monday, October 20, 2008

Citic Pacific faces billions in losses on unauthorized forex bets

Citic Pacific, a Chinese government conglomerate, is facing billions of dollars in losses after traders made what the company said were unauthorised bets against US currency. At current mark-to-market prices, Citic Pacific faces a loss of US$1.88bn. The company said that “there was no reason to believe fraud or other illegal activities were involved.” Following the news, Citic Pacfic shares lost 38%.

See, "Citic Pacific faces $2bn in forex losses," Financial Times, October 20, 2008, at; "CITIC Pacific shares dive 38 percent on forex losses," Reuters, October 20, 2008, at

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