Government Involves Itself in SOE Fuel Derivative Defaults

Last year's commodity price plunge caught a number of Chinese state-owned enterprises (SOEs) flat-footed and they suffered huge losses in fuel hedging derivative trading with international investment banks. Both the SOEs and regulators are straining to explain the debacle, and there are even indications they are inclined to blame fraud and/or conspiracy by foreign investment banks.
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There has been no news in response from counterparties. It is reported that at least six international investment banks may be involved in the case. Goldman Sachs is the largest "banker" for oil derivative trading.