Sources close to HSBC Private Bank in Geneva have confirmed that three staff members have been removed from their posts as a result of unauthorised trading activity. It is understood that the three worked in the department which deals with Turkish clients. The sources were unable to identify the names of those let go.

There is no suggestion that any of the three received any personal benefit from the unauthorised trades which seem to have resulted from errors and/or misunderstandings rather than a deliberate strategy on the part of those relieved of their duties. The trades were alleged to be in foreign exchange.

The bank is understood to be still investigating the situation and has yet to ascertain the exact circumstances and extent of any losses incurred, but it seems that the larger numbers - up to $70 million - being quoted in some press reports will be proved to be an exaggeration.

That having been said it is also true that, in most banks, errors honestly made and immediately declared are normally forgiven and learned from. It is likely, therefore, that there are a number of trades that need to be investigated and the full extent of the situation and the way in which it was covered up may take a while to unfold.