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£85m rogue trader: It's a misunderstanding
Peter Dominiczak12.03.09
The banker at the centre of an £85 million "rogue trader" scandal today insisted the issue was a "misunderstanding" as he returned to London to face investigators.
Alexis Stenfors, 38, a London-based foreign exchange trader with Merrill Lynch, is at the centre of an inquiry into the alleged multi-million-pound losses.
Merrill Lynch, bought in September by Bank of America, suspended Mr Stenfors after it discovered "irregularities" in his trading book three weeks ago while he was on a skiing holiday.
The bank admitted it had uncovered a possible rogue currency trader in its London offices before suspending Mr Stenfors after claiming he had racked up more than £85 million in undisclosed losses in recent months. Mr Stenfors is said to have flown to Sweden last week with his family to escape the storm.
But he has now returned to face an investigation by Merrill Lynch and the City watchdog the Financial Services Authority.
Speaking to the Standard from his three-storey house in Tufnell Park, where he lives with his wife Maria Kristina and their two young daughters, Mr Stenfors said: "Right now, I just have to protect my two young children.
"I can't talk about this at the moment. You have to talk to Merrill Lynch because I can't say anything at all."
He added: "Of course, it's a misunderstanding."
The huge trading losses are another blow to the bank that made a $27.6 billion overall loss last year. Mr Stenfors joined Merrill Lynch in 1995 after four years at Crédit Agricole.
He is understood to have received a £1million-plus bonus last year after posting a trading profit of more than £85 million. Insiders now say these profits were found to be losses.
He is still employed by the American bank, but has been banned from making any deals by the FSA while the inquiry continues.
A spokesman for Merrill Lynch said: "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."
The spokesman said today that he was unaware Mr Stenfors had returned to London and declined to comment on when investigators would interview the trader.
The discovery of the "irregularity" is likely to cause further tension between Merrill Lynch and Bank of America.
Bank of America is said to be investigating whether Merrill Lynch delayed booking trading losses until large bonuses were approved and the takeover sealed. Its risk officers are said to have uncovered the irregular trades Mr Stenfors is alleged to have made.
Last week, New York Attorney General Andrew Cuomo issued subpoenas demanding to know how much was paid to seven executives at the bank who are believed to have been awarded more than £100 million in bonuses before Merrill Lynch's collapse.
The FSA was not available for comment.
