Over a 20-year career in the financial markets, Jason Geddes worked his way up from a runner on the floor of the London Metal Exchange (LME) to trading futures contracts at Dresdner Kleinwort.
But Geddis was found guilty of committing market abuse on the LME by UK market regulator The Financial Services Authority (FSA) in 2008. He was fined £100,000 and faces a lifetime ban from the securities industry.
The Financial Times now reports that Geddis has appealed the penalty the FSA wishes to impose (the regulator has apparently already agreed to reduce the fine on the grounds of financial hardship). Geddis's barrister, who says that his client has had to work in a garden center at weekends to make ends meet, claims that Geddis's actions (building up an inventory of over 50% in the lead market) wasn't deliberate market manipulation, and that he deserves no more than censure.
The newspaper quotes barrister Roderick Abbott, who told the appeals tribunal: 'Mr Geddis faces a double whammy. In imposing a large fine and preventing (him) from working in the indistry for which he is qulaified, the Authority is removing the most obvious way he has to pay the fine'.
In the meantime, Man Group CEO Peter Clarke can't be the only hedge fund executive who is shaking his head because the recent hikes in base pay over at many investment banks has made it difficult for his firm to recruit top talent.
The Wall Street Journal's Heard on the Street column reports that Clarke told those attending Man's annual meeting earlier this week: 'It's extremely difficult to compete with investment banks that have dramatically increased the fixed component of compensation across their organisations'.
Finally, the Journal also reports that Glencore CEO Ivan Glasenberg has been reflecting on his firm's current stock price. Glencore was floated in mid-May at an offer price on 530p in London, only to see the stock trading as low of 481p as recently as this week (it has since recovered to around 503p).
Glasenberg said in an interview earlier this week: 'It's nice to do an IPO where your investos get value straightaway and the share price pops up. It proves you left something on the table for them. Unfortunately after we priced it, and it started trading, the markets turned on us'.
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