Posted on 03/06/2009 2:22:30 PM PST by BGHater
Merrill Lynch admitted today that it had uncovered a possible rogue currency trader in its London offices, in another blow to the reputation of the bank that was rescued from near-oblivion last year.
Authorities in the UK and Ireland are investigating the foreign exchange trader Alexis Stenfors (right), who worked in the Merrill offices near St Paul's cathedral. He is still on the Merrill payroll but listed as inactive on the Financial Services Authority register, meaning he cannot work as a trader.
The Irish Financial Regulator said it had been made aware of "matters relating to the mispricing of trades" in London on 18 February and had authorised investigators to go into the offices in the days that followed. Merrill Lynch International is registered in Ireland, with the London office operating as a branch.
As well as co-ordinating the investigation with the FSA in London, the Irish regulator is in dialogue with US authorities, including the Federal Reserve. An independent law firm has been hired and the audit office of Merrill's parent company, Bank of America (BoA), is also involved. "We are receiving daily updates on the investigation," a spokeswoman for the Irish regulator said.
It was not immediately clear what kind of sums were involved, although one report, in the New York Times, suggested that Stenfors had recorded a trading profit of $120m (£85m) last year and taken a "handsome bonus". The report appeared to suggest his losses could have reached as much as $120m, but that could not be verified last night.
In a brief statement, Merrill said: "During a recent evaluation of certain trading positions, we discovered an irregularity. We informed regulators immediately and are working closely with authorities to thoroughly investigate the matter.
(Excerpt) Read more at guardian.co.uk ...
They will take your money in a fraction of a second. They will look at who took in how long?
“in another blow to the reputation of the bank”
I think that ship has already sailed.
Don’t think George Soros doesn’t fit in somewhere.
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