In this week’s wrap-up, we break down the fallout from IndusInd Bank’s derivatives mismanagement, why Pakistan is struggling to attract investment, whether the CAG’s appointment procedure needs a rethink, why Coca-Cola won’t snack like Pepsi and what happens if LIC enters the health insurance space.And in this week’s markets edition, we explain why both Adani and the Birla Group are suddenly betting big on cables and wires — and what that could mean for existing players in the industry. Click here to read the full markets story.
But before we begin...
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Now, let’s dive into what we wrote over the week...
When derivatives go wrongIn 1995, one rogue trader’s unhedged futures bets brought down the UK’s oldest bank. And recently IndusInd Bank reminded everyone why that story still matters.The bank disclosed a gap in how it accounted for forex derivative losses — ignoring mark-to-market rules and failing to hedge its exposure.
Instead of showing losses, it booked them as receivables. The result? ₹19,000 crores in marke.
