losses at its U.S. oil subsidiary, Metallgesellschaft Refining and Marketing
(MGRM). These losses were later estimated at over $1 billion, the largest
derivatives-related losses ever reported by any firm at the time. The incident
helped bring MG—then Germany’s fourteenth largest industrial corporation—
to the brink of bankruptcy. After dismissing the firm’s executive chairman,
Heinz Schimmelbusch, and several other senior managers, MG’s board of supervisors
was forced to negotiate a $1.9 billion rescue package with the firm’s
120 creditor banks (Roth 1994a, b).
losses at its U.S. oil subsidiary, Metallgesellschaft Refining and Marketing(MGRM). These losses were later estimated at over $1 billion, the largestderivatives-related losses ever reported by any firm at the time. The incidenthelped bring MG—then Germany’s fourteenth largest industrial corporation—to the brink of bankruptcy. After dismissing the firm’s executive chairman,Heinz Schimmelbusch, and several other senior managers, MG’s board of supervisorswas forced to negotiate a $1.9 billion rescue package with the firm’s120 creditor banks (Roth 1994a, b).
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