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Lloyds fires two over 'rogue trader' scam

by Daniel Grote on Jan 14, 2013 at 07:42

Lloyds fires two over 'rogue trader' scam

Lloyds Banking Group has fired a ‘rogue trader’ who falsified trading record to hide loss-making positions, according to The Sunday Telegraph.

Lloyds dismissed Franck Kornmann, the head of hybrid foreign exchange and interest rate trading, last February, according to the paper, which said another member of staff had also been sacked.

Lloyds discovered ‘irregular’ trades in a portfolio of complex financial products that lost the bank £37 million in the last two years, according to the paper.

After discovering the scheme, Lloyds has since shut down the Kornmann’s trading desk. A spokesman for the bank told the paper: ‘We can confirm that an individual was dismissed in February 2012 from the group following an investigation.

‘This investigation was prompted by our own internal procedures which picked up certain irregularities that conflicted with our own policies and procedures. We notified the Financial Services Authority of the finding at the time.’

3 comments so far. Why not have your say?

Tony_Laverick

Jan 14, 2013 at 10:35

Dismissed almost a year ago. Why no prosecutions yet?

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complacency rules

Jan 14, 2013 at 10:45

Fired for hiding losses, what about those fiddling the LIBOR figures or mis-selling PPI. Oh silly me, they were making profits and therefore did no do warrenting being sacked.

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Twickers

Jan 14, 2013 at 10:54

Lloyds- their a/cs for 2004 -read ceo comments- they missed targets?

and all their customers suffered over the following years- with the

policy instructions sent down the line to their "managers"- (formally

know as "staff") screw the customers (ppi- o/d to loans etc)

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