A trader's error last December cost Scandinavian bank Nordea EUR20 million, the bank has admitted. The loss was discovered in the first week of January, says 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