Ex-M Stanley trader banned

AN ex-Morgan Stanley trader who built up a hefty unauthorised oil futures position after a long liquid lunch, and then hid the deals overnight, was yesterday banned from the Financial Services Authority (FSA).

David Connor Redmond was a freight and oil trader who, the FSA say, built up a substantial futures position on the ICE crude oil futures market on 6 February, breaching the bank’s rules and regulations.

He took an “extended lunch break”, the FSA said. And, though “not visibly drunk”, the alcohol “affected his behaviour on his return to the office.”

FSA director of enforcement Margaret Cole said Redmond’s actions “showed a lack of honesty and integrity that falls short of the standards the FSA expects of approved persons.”

The ruling came a week after a similar case at the same bank.

The FSA banned a senior proprietary trader at Morgan Stanley, and fined the bank £1.4m.

The watchdog said Morgan Stanley failed to spot a $120m (£76m) mismarking made by Matthew Piper fast enough, which lead to the fine.

The FSA is cracking down on financial crime.