In month before she was fired, Citigroup precious-metals trader Gail Edmonds went as much as 75 times over her trading limit, obliging the bank to deliver $331 million in gold and silver, according to NYSE documents.
The Bloomberg story points an accusatory finger at the no-rules culture of Citi under Sanford Weill:
The case offers another example of lax controls that evolved at New York-based Citigroup under former Chairman and Chief Executive Officer Sanford Weill. Citigroup found in a 2000 internal audit that its precious-metals desk lacked adequate supervision and price verification, and then didn't do enough to address the failings, the NYSE board found.
The procedures Citigroup adopted ``did not provide for reasonable supervision of the price-verification process,'' according to the July 17 NYSE hearing board decision released today. ``As a result, the firm failed to discover Edmonds's misconduct for almost one year.''