A trader's error last December cost Nordic bank Nordea €20 million, the bank has admitted.The loss was discovered in the first week of January, said Nordea's head of corporate and institutional banking, Tom Ruud. "It is related to our dynamic structured bond, which is a stock-market index-linked bond. It is dynamic because we reposition the hedge from time to time." In early December, the trader responsible for renewing and repositioning the bank's hedge mis-registered the hedge. His mistake went unnoticed by the bank during end-of-day checking and for several weeks thereafter. By the time it was discovered, the rising market meant that netting out the position cost the bank €20 million. The loss will be reported in the bank's fourth-quarter results.
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