- A BOOZY lunch lasting three-and-a-half hours has led to career disaster for a London commodities trader who found his way back to his office to conduct a multi-million-dollar frenzy of alcohol-inspired trades.
David Redmond, a 27-year-old commodities trader with Morgan Stanley, had the long liquid lunch on February 6 last year, the Financial Services Authority said yesterday.
Redmond left his office at 1.14pm and did not return until 4.41pm, apparently brimming with false confidence.
"It appears (his drinking session) affected his behaviour on his return to the office, although he was not visibly drunk," the FSA found.
Redmond, who traded oil and freight in Morgan Stanley's commodities division, began placing large bets with the bank's money on the future cost of freight. He seems to have "panicked when he realised at some point after 5.04pm" that he was trading under the influence of alcohol and had risked $US10 million ($12.9 million).
Redmond tried to dig himself out of trouble with a barrage of new trades, spending 1 1/2 hours making an average of one trade every 7.5 seconds.
He went home with this tangle of new positions still outstanding, woke up the next morning with a hangover, and realised he might have ended his career by drastically exceeding the trading and credit limits permitted by the bank.
He went to work and secretly traded out of the positions without informing his superiors.
An electronic trail brought his trades to the attention of his bosses, and Redmond was confronted and eventually sacked.
The FSA yesterday banned him from trading for two years -- the first time the regulator has suggested alcohol might have led to serious misjudgment on a trading floor.
But the ex-Morgan Stanley man, now 28, has at least one consolation. Instead of losing the $US10 million, he actually made a profit for the bank when he unwound his alcohol-based positions the following morning.
oO
Ok, he was drunk but he did made money for the bank and yet he was sacked! So sacked for making a profit?
Where is Jackie?
Yo dude,
ReplyDeleteI believe everyone has to follow certain rules set out by your job.
I believe you are not encouraging other to engage in irresponsible behavior just because they make money out from the risky bet :)
I believe trading within your limit is even more important when u r dealing with other people's money.
Alcohol and trading just doesnt mix too well. At least this is my 2 cents.