Exposed: The rogue trader blamed for £60m losses

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Matthew Piper, 36, has gone to ground after allegations he inflated trading profits in a vanity and wageboosting exercise.

He earns £150,000 a year at Morgan Stanley, working in a team known as "investment geeks" because of their abilty to make complex financial bets on the stock market.

But Piper has been suspended and an investigation launched after a routine audit flagged up alleged profit exaggerations.

He was not at his exclusive £1million home in Spitalfields last night and Piper's parents in Truro, Cornwall are refusing to comment.

A woman who answered the door of his home broke down in tears and sobbed: "I don't know where he is. I've not heard from him."

A picture of Piper on his Facebook page shows him walking his dachshund dog Valerie. Morgan Stanley has refused to confirm the identity of the trader involved.