Merrill Lynch trader investigated over 'loss' of £84million in City currency gamble
By Hugo Duncan
Last updated at 5:54 PM on 06th March 2009
A City trader was today under investigation amid fears he has lost tens of millions of pounds in bets on the currency markets.
Alexis Stenfors, 38, is being investigated by the Financial Services Authority and his own bank, Merrill Lynch, over a suspected loss of £84million.
Three weeks ago, risk officers discovered that a London currency trader believed to be Mr Stenfors had recorded a trading profit of £84 million for the fourth quarter may instead have lost a large amount, according to the New York Times.
Merrill Lynch trader Alexis Stenfors is being investigated by the Financial Services Authority and his own bank
Merrill Lynch trader Alexis Stenfors is being investigated by the Financial Services Authority and his own bank
The trader, who lives in north London, insisted it was a 'misunderstanding' but his registration with the City watchdog has been revoked meaning he is no longer able to work.
Mr Stenfors is still employed by Merrill Lynch and his lawyer Ian Ryan said he was co-operating with the investigation.
A Merrill spokesman said today: '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.
'Senior managers of the business are focused on the issue and believe the risks surrounding possible losses are under control.'
A Merrill Lynch spokesman said that senior managers 'believe the risks surrounding possible losses are under control'
A Merrill Lynch spokesman said that senior managers 'believe the risks surrounding possible losses are under control'
Investigators were so concerned about the irregularities they have swept into Merrill's offices near St Paul's Cathedral to check positions held by other traders.
When Bank of America took over Merrill for $33billion in December, chief executive Kenneth Lewis said the deal was 'the strategic opportunity of a lifetime'.
But it has since uncovered massive losses at Merrill which have soured the deal - in the same way that Lloyds Banking Group has been tarnished by its takeover of HBOS.
Merrill lost $13.8billion during the final three months of last year alone but the extent of the carnage was not known when it paid out £2.5billion in bonuses, including to many bankers in London.
thats mere peanuts these days
