When a bank employee makes trades using the firm's money without its authorization,the practice is called:

Question

Quizplus · Accepted Answer

Rogue trading refers to the unauthorized trading by a bank employee using the firm's money. This is a serious breach of trust and can result in significant financial losses for the bank. Rogue accounting refers to the fraudulent manipulation of financial records, while a Ponzi scheme is a fraudulent investment scheme that promises high returns but pays out earlier investors with the investments of newer investors. Imbalanced banking is not a commonly used term in finance and is not relevant to the scenario described in the question.

When a Bank Employee Makes Trades Using the Firm's Money