Firm Fined As Trader Hide $8.8m Losses For Two Years

UK securities regulator The Financial Services Authority (FSA) has fined Toronto Dominion Bank's London operation $1m over the activities of a fixed income trader who managed to hide his trading losses (which finally hit $8m) for a two year period.

Simon Brignall, who left the firm in March last year, apparently told the bank's management about his shenanigans when he resigned. He admitted to mispricing some of his positions and entering a number of ficticious trades into his book in order to cover up trading losses. Brignall, who is said to have been suffering from issues in his personal life when he started to hide his losses, didn't personally gain from his misdeeds. He has been banned from the City for life.

Toronto Dominion copped it to the tune of $1m it as it clearly had flawed risk controls. The FSA acknowledged, however, that the bank notified it of the problems as soon as they came to light. A spokesperson for the bank said that 'we took this matter very seriously and cooperated fully with the regulator. We have since changed our proceduares and controls and are committed to reviewing them on an ongoing basis'.

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