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FSA Sets Dangerous Precedent In Drunk Trader Case

I’m not promoting alcoholism, but like so many things in life, there are some activities many of you are better at while under the influence. Sadly, in London, one guy had to ruin it for the whole group. Steve Perkins, the oil trader who bought 7.13 million barrels of crude oil on behalf of his firm after “a drunken golf weekend” has been fined £72,000 and banned from the industry for a minimum of 5 years.

The 34-year-old, who lives in Brentwood, was a senior trader for PVM in the West End when he went on his spree last June. Working from a laptop at home after a weekend playing golf, he was able to move the oil market by engaging in huge amounts of speculative buying at ever-higher prices. In a statement, the FSA said: “Mr Perkins’ explanation for his trading on 29 and 30 June is that he was drunk. He says that he drank heavily throughout the weekend and continued drinking from around mid-day on Monday 29 June. He claims to have limited recollection of events.”

The last transaction in his spree was made at 3.41am on June 30. In all, he bought futures contracts equivalent to nine million barrels of oil. He also sold about 2.5 million in futures. PVM did not discover the rogue trades until Tuesday morning. It dumped them as soon as it could with the price falling, at a cost to the firm of £6 million — a year’s worth of profits.

The well-oiled rogue trader: City firm lost £6m after drunken broker bought 7 MILLION barrels of crude [Daily Mail]
‘Drunken weekend’ oil trader banned for £345m spree [This Is London]

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28 Responses to “FSA Sets Dangerous Precedent In Drunk Trader Case”

  1. Anonymous says:

    Someone ice this bro.

  2. Anonymous says:

    Take one down, pass it around, 7,129,999 barrels of crude on the wall.

  3. Ah yes, the ol’ ‘come into the office/computer after you are drunk’ routine.

    Reminds me of a time when I was a financial analyst at a bank and our VP came from the bars downtown, straight to his office. He typed 2 words, “Tranny hooker” to his friend and CCed the entire bank.

    He came in on Monday like nothing ever happened and was literally carried out crying like a bitch.

  4. Anonymous says:

    @3 I wasn’t crying, I just had a little splooge in my eye.
    John Thain

  5. Anonymous says:

    Bess:
    Where is the “was that wrong/ should I not have done that”, tag?

  6. Bess Levin says:

    @5 you can’t use it on everything.

  7. Anonymous says:

    So…what did he shoot?

  8. Anonymous says:

    @2 ftw

  9. Anonymous says:

    has been fined? then fired? No “I fell asleep/passed out on the F12 defense? Where’s the picture of him with a fish? seems a nice fraudulent common demonator

  10. american bandersnatch says:

    Glad to see the internal controls are working properly.

    – Barings Bank’ COO

  11. kudlow says:

    trading whilst on coke is ok though, right?

  12. Bike says:

    I had a manager years ago who basicly said “I don’t care how drunk you get at lunch, just don’t trade.

    Serves him right, everyone knows you can only trade bonds drunk.

  13. Debrahlee Lorenzana's Burka says:

    He must have been well oiled ….

  14. Anonymous says:

    @6 Bess, consider alternating with “that’s not going to be good for business”

  15. Anonymous says:

    @15 That tag is great Bess please take note

  16. He should have used the “i’m not a pedo, my cat walked on my keyboard while i was away and accidentally and download all that” defense.

  17. PermaGuest says:

    @3 Sounds like a good candidate for the SEC

  18. Anonymous says:

    Did they say if he was from East Texas or not? I bet he was from East Texas. Dumbest traders in the world are from East Texas.

  19. Anonymous says:

    Everyone in Texas is dumber than a Canadian in a beaver costume.

    N. Wacker Stud

  20. Anonymous says:

    In Soviet Russia, oil trade you!

  21. Anonymous says:

    @11 Only at UBS

  22. Anonymous says:

    I uh, didn’t know i couldn’t do that…

  23. Anonymous says:

    @20/NWS, everyone knows there are no real bankers in chicago. get back to your parents’ basement for another heatling WOW session.

  24. Cayne says:

    Ask my wife about the time I knocked out a 1/8th of purple cush and then got rolled for 2million playing contract bridge.

  25. blanal says:

    I use that same excuse every time my ‘friends’ catch me begging a morbidly obese female for sex… tho the truth is I knew exactly what I was trying to do the whole time.

  26. derivative deviant says:

    “When im drunk at work I play with my blonde female assistants nipples and stay away from my computer”

    – Jabre

  27. JacobWO says:

    I’ve just stubled upon this site http://www.complianceintl.com, could I just borrow the technical
    data from the site or do I need special permission?. I’m doing a project for school.

    Jacob

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