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THURSDAY, NOVEMBER 26, 2009
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Trader's $400M Loss Behind Merrill's London 'Irregularity'

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(Newser) – A rogue Merrill Lynch trader appears to have posted some $400 million in undisclosed losses in recent months, the Financial Times reports, covering his tracks with the “irregularity” the firm’s London branch is currently investigating. Alexis Stenfors, now suspended, reported $120 million in gains in 2008’s fourth quarter to cover for significant losses, the Times of London adds.

Merrill, now owned by Bank of America, says it believes “the risks surrounding possible losses are under control.” A lawyer for Stenfors told the New York Times yesterday that the matter was a “misunderstanding” and that his client was cooperating with investigators.

A security guard monitors the entrance to the Merrill Lynch Financial Center in central London.
A security guard monitors the entrance to the Merrill Lynch Financial Center in central London.   (AP Photo)
A view of the Merrill Lynch Financial Center in central London.
A view of the Merrill Lynch Financial Center in central London.   (AP Photo)
New York State Attorney General Andrew Cuomo.
New York State Attorney General Andrew Cuomo.   (AP Photo)
Former Merrill Lynch & Co. CEO John Thain leaves the AG's office.
Former Merrill Lynch & Co. CEO John Thain leaves the AG's office.   (AP Photo)
Graphic shows breakdown of bonuses awarded to Merrill Lynch employees in 2008.
Graphic shows breakdown of bonuses awarded to Merrill Lynch employees in 2008.   (AP Photo)
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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. - Merrill Lynch

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SPH
Mar 7, 09 11:19 AM CST
A $400M "misunderstanding"...OK everything is fine now...The guy is a crook...... Reply
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