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Biggest Banks Rue Millions Lost on Trader Who Failed Before

  • Statti helped run two troubled companies before Invexstar
  • Trader rode scooter, gave wine to clients, ex-colleagues say
BNP Paribas, based in Paris, was owed 49 million pounds in July and Tokyo-based Nomura 28 million pounds.
Photographer: Jason Alden/Bloomberg
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BNP Paribas SA and Nomura Holdings Inc. are among five banks nursing losses of about 120 million pounds ($171 million) on the demise of an obscure bond-trading firm called Invexstar Capital Management Ltd. They shouldn’t be surprised.

Alberto Statti, 49, Invexstar’s manager and sole employee, helped run two firms before the London-based brokerage foundered last year. One ceased trading in 2008 with losses of 54 million pounds, while the other collapsed in 2013, owing about 12 million pounds to creditors including JPMorgan Chase & Co., according to U.K. regulatory filings.