nternal Control Activities. An example of a lack of internal controls with a disastrous result was the bond trading loss in the New York Office of Daiwa Bank in 1995. Over 11 years 30,000 unauthorized trades were made resulting in a $1.1 billion loss (an average of $400,000 in losses for every trading day). Daiwa allowed Toshihide Iguchi, a bond trader, to authorize sales, have custody of the bond assets, and record these transactions. As a novice trader, Iguchi misjudged the bond market, racking up a $200,000 loss. To raise cash to pay Daiwa’s brokers, Iguchi would order Bankers Trust New York to sell bonds held in Daiwa’s account. The statements from Banker’s Trust came to Iguchi who forged duplicates, complete with bond numbers and maturity dates, to make it look as if Banker’s Trust still held the bonds he had sold. When he confessed to his misdeeds, the Daiwa