• 29 Jun 2010 at 12:37 PM

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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Comments (28)

  1. Posted by Anonymous | June 29, 2010 at 12:51 PM

    Someone ice this bro.

  2. Posted by Anonymous | June 29, 2010 at 12:54 PM

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

  3. Posted by OptionsTrader | June 29, 2010 at 12:55 PM

    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. Posted by Anonymous | June 29, 2010 at 12:59 PM

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

  5. Posted by Anonymous | June 29, 2010 at 1:06 PM

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

  6. Posted by Bess Levin | June 29, 2010 at 1:09 PM

    @5 you can’t use it on everything.

  7. Posted by Anonymous | June 29, 2010 at 1:12 PM

    So…what did he shoot?

  8. Posted by Anonymous | June 29, 2010 at 1:17 PM

    @2 ftw

  9. Posted by Anonymous | June 29, 2010 at 1:18 PM

    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. Posted by american bandersnatch | June 29, 2010 at 1:19 PM

    Glad to see the internal controls are working properly.

    - Barings Bank’ COO

  11. Posted by kudlow | June 29, 2010 at 1:24 PM

    trading whilst on coke is ok though, right?

  12. Posted by B. Hunter | June 29, 2010 at 1:27 PM

    Pussy.

  13. Posted by Bike | June 29, 2010 at 1:29 PM

    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.

  14. Posted by Debrahlee Lorenzana's Burka | June 29, 2010 at 1:31 PM

    He must have been well oiled ….

  15. Posted by Anonymous | June 29, 2010 at 1:33 PM

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

  16. Posted by Anonymous | June 29, 2010 at 1:39 PM

    @15 That tag is great Bess please take note

  17. Posted by ExtraordinaryPopularDelusions | June 29, 2010 at 1:41 PM

    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.

  18. Posted by PermaGuest | June 29, 2010 at 1:45 PM

    @3 Sounds like a good candidate for the SEC

  19. Posted by Anonymous | June 29, 2010 at 1:52 PM

    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.

  20. Posted by Anonymous | June 29, 2010 at 2:00 PM

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

    N. Wacker Stud

  21. Posted by Anonymous | June 29, 2010 at 2:11 PM

    In Soviet Russia, oil trade you!

  22. Posted by Anonymous | June 29, 2010 at 2:23 PM

    @11 Only at UBS

  23. Posted by Anonymous | June 29, 2010 at 2:38 PM

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

  24. Posted by Anonymous | June 29, 2010 at 3:20 PM

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

  25. Posted by Cayne | June 29, 2010 at 4:01 PM

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

  26. Posted by blanal | June 29, 2010 at 6:32 PM

    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.

  27. Posted by derivative deviant | June 30, 2010 at 3:39 AM

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

    - Jabre

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