Bank Loses $70 Million

Chemical Banking Corp., one of the nation’s biggest banks, said Tuesday it lost $70 million during the last quarter on unauthorized trades in Mexican pesos that were made by one of its employees.

The foreign currency trader took positions “in violation of authorized risk limits,” then concealed the actions, Chemical said.

The losses occurred when the peso plummeted in value after the Mexican government devalued it in December.

Traders said other banks have racked up similar losses in the past from wrong bets on risky currency contracts. But Chemical’s loss was startling because it was caused by a single trader.

Chemical spokesman John Meyers declined to name the trader and said he didn’t know if the person still worked for the bank. Sources said the individual had been fired.