Natixis $290 Million Korea Losses Part of ECB Scrutiny of Risk
- Losses tied to exotic securities part of broader review
- Natixis lost money on a defective model in Korea in December
The Natixis SA logo sits on the company's offices in Paris, France.
Photographer: Martin Barzilai/BloombergThis article is for subscribers only.
The European Central Bank is scrutinizing how French securities firm Natixis SA lost hundreds of millions of dollars on exotic trades last year as part of a wider review, according to people with knowledge of the matter.
The ECB is examining losses tied to Korean securities which caused Paris-based Natixis to report a 259 million-euro ($292 million) hit in December, citing a “deficient” trading strategy, the people said, asking not to be identified as the matter is private. The review is part of a broader look by the ECB at Natixis’s risk models, the people said.