Merrill Says It Discovered Trading "Irregularity" (Update2)

[jordi_fanclub]

Source: Bloomberg

March 6 (Bloomberg) -- Merrill Lynch & Co., the securities firm acquired by Bank of America Corp., said it uncovered an “irregularity” during a review of its trading operations.

The bank informed regulators immediately of the discrepancy in “certain trading positions”, Merrill Lynch said in a statement from London today. The bank said it’s working with the authorities to investigate further. A spokeswoman for the bank declined to comment further.

Merrill Lynch may have lost hundreds of millions of dollars on currency trading and credit derivatives last year, the New York Times reported earlier today. The losses did not “spill into plain view” until after Bank of America investors had approved the $33 billion takeover in December and Merrill Lynch disbursed $3.6 billion in bonuses to bankers, the newspaper said. Bank of America later sought additional government funding.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=awR18y2Q7QLU&refer=home

---

The extensions of Wall St FRAUDSTERS are still alive but not so well.

[Botany]

1. Now how do you lose hundreds of millions and not know about it?

good thing their exes all got big bonuses. :grr:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3770015

[hootinholler]

15. Ask Rumsfeld about the2.3Trillion in 2003.

:shrug:

-Hoot

[D-Lee]

16. Think about a go-go era disco man in the 1960s as a typical banker

(maybe with some nose candy) ... get rid of the thought of a grey-haired, grey-suited responsible tightfisted banker.

You need to re-conceptualize to understand what has happened because of "bank" de-regulation.

That thought pattern helps me a lot!

If that image doesn't do it for you, think about someone with a really big gambling addiction.

After all, a banker who approved a $500,000 mortgage for someone making $40,000 per year definitely is not operating on old-style banking principles ....

[No Elephants]

2. I uncovered an irregularity, too. It's beginning to look as though I robbed a bank. No problem!

[Qutzupalotl]

8. I'm getting the feeling the banks

are robbing us.

[Robbien]

3. Merrill has been convicted three or four times for trading irregularities

It is no surprise that their whole system is set up to hide the results of traders acting badly.

[natrat]

4. sure ,whatever--then begs more money to loot and pay huge bonuses

[closeupready]

5. Can someone explain in plain English what this means?

Are they saying euphemistically that they may have broken the law or something?

[On the Road]

6. Looks Like it Was an Individual Trader

who lost a large amount of money and tried to cover his tracks rather than 'fess up.

Three weeks ago, risk officers discovered that a London currency trader who had recorded a trading profit of $120 million for the fourth quarter may instead have lost a large amount, the New York Times said, citing an unidentified Bank of America executive.

The newspaper identified the employee as Alexis Stenfors, 38. He told the New York Times the matter was a “misunderstanding” and is co-operating with the probe.

[closeupready]

7. Oh, thanks.

It's hard for someone like me who isn't in finance to grasp, in view of all the current financial scandals, numbers of dollars being thrown around in the billions and trillions, ... to grasp why this is making news or what the significance of this is. :hi:

[On the Road]

12. Glad You Asked

The part of the article that was posted didn't really say anything. I figured someone was mokeying with bid and ask prices or something.

It's not the first time this has happenned and it may not have been Merrill's fault. Just an overaggressive trader who lied to keep his job.

I work in finance in the telecom industry and I have difficulty interpreting a lot of the news these days. The banking industry is very specialized. Can't imagine what it's like for most people.

[Deja Q]

10. I can only guess that Merrill didn't take enough Imodium-AD and down the money went.

[kojak]

9. Only hundreds of millions? *yawn*

This guy needs to be fired as he's just a rank amateur. His pals are probably laughing at him right now as they're busy hiding billions in a Lichtenstein bank account.

[fascisthunter]

11. Confiscate ALL Assets from those who committed Fraud

and then throw their over-priviledged ego-centris fascist asses in jail.

[progressoid]

13. Irregularities and discrepancies huh?

Well, how about we just write you a big fat check. Does that help fix these Irregularities and discrepancies?

[avaistheone1]

14. Something smells really fishy on this one.

[FarCenter]

17. More London skullduggery

"The newspaper identified the employee as Alexis Stenfors, 38. He told the New York Times the matter was a “misunderstanding” and is co-operating with the probe. He remains a Merrill Lynch employee. Calls to his office in London and mobile phone from Bloomberg News weren’t answered."