A case that was supposed to run for months, and perhaps shine some light on what really occurred at Sumitomo when rogue trader Yasuo Hamanaka bet the bank and the bank lost, has been settled. Journalists, who expected to have fun with this story for some time to come, will be severely disappointed.
Hamanaka holds the dubious record of being the only man to have lost more money for a bank than Nick Leeson. The once highly regarded former copper trader, now in clink back home in Japan, is said to have dropped around $2.6bn during a 10 year unauthorized trading binge.
Sumitomo had filed a $1.1bn damages claim against metals broker Credit Lyonnnais Rouse (CLR), alleging that the broker helped facilitate the fraud and turned a blind eye to Hamanaka's now-obvious shenanigans. CLR always denied wrongdoing and the case has now been settled on undisclosed terms.
Sumitomo has withdrawn all allegations it made against CLR and its employees.