Yasuo Hamanaka
Encyclopedia
is a man who formerly was the chief copper
trader at Sumitomo Corporation
, one of the largest trading companies in Japan
, and was also known as "Mr. Copper" because of his aggressive trading style and "Mr. Five Percent" because that is how much of the world's yearly supply he controlled.
On June 13, 1996, Sumitomo Corporation reported a loss of 1.8 billion dollars in unauthorized copper
trading by Hamanaka on the London Metal Exchange
.
In September 1996, Sumitomo disclosed that the company's financial losses were much higher at 2.6 billion dollars (285 billion yen).
Considering the size of the losses and the fact that they were accumulated over more than ten years, many believe that Hamanaka could not have been able to corner
the copper market without some kind of knowledge or authorization from his supervisors.
Hamanaka was sentenced to eight years in prison in 1998 and was released in July 2005, one year early.
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
trader at Sumitomo Corporation
Sumitomo Corporation
Sumitomo Corporation is one of the largest worldwide trading company , and is a diversified corporation. Sumitomo is headquartered in the Harumi Island Triton Square Office Tower Y in Chūō, Tokyo, Japan...
, one of the largest trading companies in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, and was also known as "Mr. Copper" because of his aggressive trading style and "Mr. Five Percent" because that is how much of the world's yearly supply he controlled.
On June 13, 1996, Sumitomo Corporation reported a loss of 1.8 billion dollars in unauthorized copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
trading by Hamanaka on the London Metal Exchange
London Metal Exchange
The London Metal Exchange is the futures exchange with the world's largest market in options, and futures contracts on base and other metals. As the LME offers contracts with daily expiry dates of up to three months from trade date, along with longer-dated contracts up to 123 months, it also...
.
In September 1996, Sumitomo disclosed that the company's financial losses were much higher at 2.6 billion dollars (285 billion yen).
Considering the size of the losses and the fact that they were accumulated over more than ten years, many believe that Hamanaka could not have been able to corner
Cornering the market
In finance, to corner the market is to get sufficient control of a particular stock, commodity, or other asset to allow the price to be manipulated. Another definition: "To have the greatest market share in a particular industry without having a monopoly...
the copper market without some kind of knowledge or authorization from his supervisors.
Hamanaka was sentenced to eight years in prison in 1998 and was released in July 2005, one year early.