HSBC Lost About $200 Million in One Day on Gold Market Turmoil
- Loss was in late March as New York and London markets diverged
- Bank is one of the leading traders of precious metals
Photographer: Akos Stiller/Bloomberg
This article is for subscribers only.
HSBC Holdings Plc lost around $200 million in one day in March because of disruptions to the gold market that caused prices to diverge dramatically in key trading hubs, according to a filing by the bank.
The one-day loss was unusually large for a market in which the leading banks -- which include HSBC and JPMorgan Chase & Co. -- typically hope to make around $200 million in an entire year. It far exceeded the maximum loss anticipated by HSBC’s value-at-risk models.