Regulator agrees terms of probe into Merrill trader
Ireland's Financial Regulator has agreed the scope of an investigation into a potentially huge irregularity in the books of a London Merrill Lynch trader with the UK Financial Services Authority.
The investigation is being conducted by an independent external firm in conjunction with Bank of America/Merrill Lynch Corporate audit.
The Regulator's office is also liaising with the office of comptroller of currency and the Federal Reserve of Richmond.
Merrill Lynch is registered in Ireland and is owned by the Bank of America.
According to US reports, the focus is on Alexis Stenfors, a foreign exchange trader.
Suspended
It is understood the trader has been suspended after accumulating more than £284m in undisclosed losses. He works for the London branch of Merrill Lynch International Bank, a Dublin-registered firm.
The company directors include former senior civil servant Paddy Teahon and Liam O'Reilly, the former chief executive of the Financial Regulator.
The Financial Regulator is receiving daily updates on the progress of this investigation, it said yesterday.
"We are liaising with international regulators which include FSA, office of comptroller of currency and the Federal Reserve of Richmond," a spokeswoman said.
However, she added that while the investigation continues, the Financial Regulator cannot make any further comment.
- AILISH O'HORA
