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Greenpeace Loses Millions on Bad Currency Bet by Rogue Employee

The environmental group said the organization was deeply concerned that the incident would offend its supporters, and apologized.
Greenpeace has suffered a $5.2 million loss on an ill-timed bet in the currency market by a well-intentioned — if reckless — employee in its financial unit.
Greenpeace has suffered a $5.2 million loss on an ill-timed bet in the currency market by a well-intentioned — if reckless — employee in its financial unit. JOSE JORDAN / AFP - Getty Images
/ Source: The Associated Press

Greenpeace has suffered a 3.8 million-euro ($5.2 million) loss on an ill-timed bet in the currency market by a well-intentioned — if reckless — employee in its financial unit.

The environmental group, which is based in Amsterdam, said Monday the employee — who had bet the euro would not strengthen against other currencies in 2013, when it did — had acted beyond the limits of his authority.

Greenpeace International fired the employee, whom it did not identify, but said there was no evidence of fraud.

"Every indication is, this was done with the best of intentions but not the best of judgment," said spokesman Mike Townsley in a telephone interview from Mexico.

He said the organization was deeply concerned that the incident would offend its supporters, and apologized. Greenpeace does not accept contributions from companies or governments and is funded entirely by individuals.

Responsibility lies partly with the employee and partly with the organization, Townsley said.

The employee was a financial expert whose job included currency trades to protect the organization from fluctuations in the market. He was not qualified, however, to undertake trades on the scale he did. In addition, he ignored company rules, under which he should have checked with supervisors and probably hired an external expert for advice on how to manage risks.