Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a650607
Two fired in Lloyds 'rogue trader' scam
by Daniel Grote on Jan 14, 2013 at 08:08
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.’
News sponsored by:
Subscribe to Wealth Manager to get the inside track on your rivals' moves
Keep up to date with how your peers are allocating their clients' assets by subscribing to Wealth Manager magazine.
Today's top headlines
More about this:
Look up the shares
What others are saying
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
by Emma Dunkley on May 22, 2013 at 11:09