LONDON (AP) — British regulators on Tuesday banned a former trader at Merrill Lynch International bank from working on financial markets after he manipulated his accounts by about $100 million last year to hide growing losses.
The Financial Services Authority ruled Tuesday that Alexis Stenfors, previously employed as a senior trader by Merrill Lynch in London, was not a “fit and proper person.”
The FSA said Stenfors, who worked on the on the short term interest rate trading desk, “deliberately mis-marked the positions he traded on behalf of MLIB between mid-January 2009 and mid-February 2009 by around $100 million in order to avoid showing increasing losses in his books.”
As a result, MLIB made a negative adjustment of $456 million to its books, the FSA said.
“We have banned Stenfors because his misconduct was deliberate, frequent and repeated over a one month period,” said Margaret Cole, FSA director of enforcement and financial crime.
Because Stenfors cooperated with the agency and his former employer, and expressed remorse, the FSA said it was likely to revoke the prohibition order in five years if there is no further evidence of misbehavior.
In October, Merrill Lynch was fined euro 2.75 million ($3.77 million) by the Irish Financial Regulator for failures related to Stenfors’ mis-marking, the FSA said.