Ex-Merrill Lynch trader banned by FSA for ‘mis-marking’

17 March 2010

A banker previously employed by Merrill Lynch International Bank (MLIB) has been banned for deliberately mismarking trades, the Financial Services Authority (FSA) has announced.

Alexis Stenfors, a former proprietary trader at MLIB working on the short term interest rate trading desk, was found to have mismarked positions on trades by $100 million to disguise losses, the industry regulator explained

The banker’s actions led to MLIB making a negative adjustment of $456 million to its accounts.

Margaret Cole, FSA director of enforcement and financial crime, said: “We have banned Stenfors because his misconduct was deliberate, frequent and repeated over a one month period.

“He was a senior and experienced trader who held a position of trust at the firm. He betrayed the trust placed in him by the firm and demonstrated that he is not fit and proper to be approved by the FSA.”

Mr Stenfors perpetrated the crime in January and February of 2009.

His action led to MLIB receiving a €2.75million penalty in October last year from the Irish Financial Regulator for failing to
effectively manage its traders.

The FSA added that the ban will only last for five years due to the willingness of the trader to cooperate in the investigation.

By Jim Ottewill

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