We already knew Bank of Montreal lost a bunch of money on natural gas trading, as the bank revealed to investors in late April that it had pretax commodity trading losses between C$350mm-C$450mm. This estimate turned out to be juuuuuust a bit outside, as BMO revealed today that pretax losses were actually C$680mm. Whoops. Fortunately, there were a few Hunter-esque figures to take the fall, from the Wall Street Journal:
The Canadian bank known as Bank of Montreal also said that two unnamed employees in the commodities-trading operations were placed on leave. They are no longer with the company. Oversight of the business has also changed, and new traders have been added to help reduce the portfolio's risk.
The bank blamed (not oil prices and an unseasonably cold April for once) a quickly moving market combined with liquidity issues and historically low volatility.
A reader also just sent bonus figures for BMO based upon information from a former staffer ($90k/$110k/$130k), placing it at the bottom of the bonus barrel along with Lehman and Piper Jaffray so far.
Send those projected bonus numbers to: tips at dealbreaker dot com
BMO Raises Amount of Losses From Energy Trading [Wall Street Journal]