Morgan Stanley has become the latest bank to suffer at the hands of a rogue trader, a spokesperson has revealed. The bank found that a London based trader had marks in his books that were inconsistent with the company’s policies. The bank has since suspended the employee but has had to write down £61 million to cover the costs of the dealer’s activities. Morgan Stanley has begun conducting an internal review, having already informed the Financial Services Authority.
The news was announced as the investment bank revealed their second quarter results. Despite the sale of a Spanish wealth management business for £354 million and the receipt of £372 million from a secondary offering of stock in Morgan Stanley Capital International, the bank’s profit still fell by 60 per cent. In the latest sign of the continuing impact of the credit crunch, the decrease in profits was attributed to the £124 million cost of staff reductions, and the £485 million loss on mortgage related investments .
Morgan Stanley is not alone in falling victim to rogue traders, however, with Lehman Brothers and French bank Societe Generale also suffering a similar fate in recent months.
Investment Bank Suffers at Hands of Rogue Trader
Investment Bank Suffers at Hands of Rogue Trader
Fri, 20 Jun 2008
Recommended links
Internet Banking GuideBusiness Banking Guide
Top Pension Providers
Remortgage Deals
Need Financial Advice?
HSBC Set to End Pursuit of Korean Bank
Citigroup to Make Cuts to Banking Portfolio
| Banking news |
|---|
| Royal Bank of Scotland Reveals Job Cuts - Fri, 14 Nov 2008 |
| Europes Biggest Bank Announces Further Losses - Wed, 12 Nov 2008 |
| Bank of England Cut Leaves Interest Rate at Lowest Level in 53 Years - Fri, 07 Nov 2008 |
| More News |
