Abstract

The case discusses how Yasuo Hamanaka (Hamanaka), the chief copper trader at Japan’s Sumitomo Corporation caused major losses to the company through his unauthorized trading activities in the physical and futures market in copper at the London Metal Exchange. It traces the complete sequence of events leading to the revelation of the scandal. The case also highlights the reasons for the copper debacle, including the lack of proper managerial supervision and operational control systems and the misuse of authority by Hamanaka.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Importance of proper supervision and control systems in a trading firm.

Keywords

Yasuo Hamanaka, chief, copper, trader, Sumitomo Corporation, unauthorized trading, physical, futures market, copper, London Metal Exchange, revelation, copper debacle, managerial supervision, operational control systems, misuse, authority