Two years ago, a Morgan Stanley operations executive was caught bilking the firm by processing payments on corporate actions, such as dividends. He was also authorized to request or approve checks from one of the company’s in-house accounts.
Last year, a former Goldman Sachs programmer went to jail after allegedly transferring substantial portions of the firm’s proprietary computer code for its trading platform to a computer server in Germany. He also transferred thousands of computer code files to his home computers.
This year, UBS took a $2.3 billion loss after a trader with knowledge of its back office systems was able to continue his pattern of unauthorized trading – by faking trades.
-- This article first appeared on Securities Technology Monitor.