Saturday, March 7, 2009

Another bogus bonus at Merrill Lynch

Merrill has discovered that a London-based trader who said he made $120 million last year actually lost $400 million. Merrill describes this as "an irregularity." The trader described it as "a misunderstanding."

Merrill is poring over the books of Alexis Stenfors, a London currency trader, who was suspended after Norwegian and Swedish currency trades went wrong, according to people familiar with the situation. Merrill is in talks with UK regulators...

Mr. Stenfors, was on Merrill Lynch's bogus bonus list; a list that Bank of America said would cause irreparable harm if it was made public.

How many people on Merrill's bogus bonus list had sour derivative bets that the firm doesn't know about? If BofA doesn't know what's going on in currencies, how do they know what's going on in their derivative books? And how about JP Morgan with their $88 trillion of derivatives? If the traders at JP Morgan are so smart that they can hide Bernanke's losses, what makes you think they aren't hiding losses and booking it as gains like Mr. Stenfors did over at Merrill Lynch?

He steals millions and millions from Merrill Lynch by pretending he was engaged in profitable trading, when in fact, he had lost $400 million, and it's called a "misunderstanding."

You hold up a 7-11, and it's called a felony, and you get 20 years.

You hold up Bank of America, and you get a bonus!

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