Oct 23, 2009
Ireland fines Merrill $5.75m
DUBLIN - IRELAND'S financial regulator has fined Merrill Lynch International Bank Ltd, a unit of Bank of America Corp, 2.75 million euros (S$5.75 million) for two cases of traders inappropriately valuing their positions.
The regulator said the first incident occurred between Dec 2008 and Feb 2009, resulting in losses to Merrill of US$456 million and the second between May and August 2009, resulting in a US$5.3 million loss. Both occurred at Merrill's London branch.
'Breaches of regulatory requirements common to both incidents were a failure to have in place a well defined and transparent line of supervisory responsibility; a failure to supervise the trader's activity and an inadequate month-end independent price verification process,' the regulator said.
Merrill Lynch has taken complete remedial action to fully rectify the breaches and the matter is now closed, it added. -- REUTERS
Ireland fines Merrill $5.75m
DUBLIN - IRELAND'S financial regulator has fined Merrill Lynch International Bank Ltd, a unit of Bank of America Corp, 2.75 million euros (S$5.75 million) for two cases of traders inappropriately valuing their positions.
The regulator said the first incident occurred between Dec 2008 and Feb 2009, resulting in losses to Merrill of US$456 million and the second between May and August 2009, resulting in a US$5.3 million loss. Both occurred at Merrill's London branch.
'Breaches of regulatory requirements common to both incidents were a failure to have in place a well defined and transparent line of supervisory responsibility; a failure to supervise the trader's activity and an inadequate month-end independent price verification process,' the regulator said.
Merrill Lynch has taken complete remedial action to fully rectify the breaches and the matter is now closed, it added. -- REUTERS
