Definition – What does John Rusnak mean?
John Rusnak is a former Allfirst Bank currency trader who lost $690 million of the bank’s money trading currency. Rusnak joined the bank in 1993 on the promise of running an arbitrage trading strategy using options and currency forwards. In reality, Rusnak was engaging in directional trading and losing quite badly.
ForexTerms explains John Rusnak
Rusnak’s time at Allfirst has become a case study in financial controls. By circumventing the banks order entry systems, Rusnak was able to conceal growing losses for years. Despite running a portfolio worth several hundred million, Rusnak did not profit personally from his fraud – this resulted in a lighter sentence once he was exposed. He was simply a bad trader with too much capital.