A statement from Merrill Lynch:
"During a recent evaluation of certain positions, we discovered an irregularity. We informed regulators immediately and are working closely with authorities to thoroughly investigate the matter. Senior managers of the business are focused on the issue and believe the risks surrounding possible losses are under control."
The FT reports that the irregularity concerns a London-based foreign exchange trader who had earlier reported a trading profit of $120 million.
3 comments:
I don't think my nerves can take another accounting scandal.
Thank God it was only peanuts.
These "rogue trader" stories don't wash with me. Why is it that rogue traders are only ever pursued when they make a loss? Do they never make a profit, or is a blind eye turned when they do? How can any business be so poorly run that multi-million pound exposure to risk is managed by an individual? To me, even assuming everyone is 100% honest is evidence of idiocy of the highest order - unless, of course, corruption is endemic and these rogue trader stories are a cover-up... as those who might rock the boat are hung out to dry?
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