A $1.1 billion bond trading loss at Daiwa Bank's New York office - allegedly the result of fraudulent activity by one employee over 11 years - is raising concerns among bankers and regulators about the oversight of trading operations.

Observers said the employee, executive vice president Toshihide Iguchi, could have carried out the trading only if there was no independent "middle office" reviewing his transactions.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.