Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Two fired in Lloyds 'rogue trader' scam

Two fired in Lloyds 'rogue trader' scam

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

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, the Sunday Telegraph reported. 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.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Commodity conundrum, beleaguered bonds and a US dilemma

Commodity conundrum, beleaguered bonds and a US dilemma

This week’s episode of Investment Pulse looks at the impact of falling commodity prices on banks, dangers of negative yield curves and whether US equities can continue to deliver.

Play Mirabaud's Pyshkin: The US will continue to grow dividends

Mirabaud's Pyshkin: The US will continue to grow dividends

The global equity income manager has invested half of his fund here.

Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Wealth Manager on Twitter