London Broker Banned For Trading In A Drunken Condition

June 30th, 2010 - 9:00 pm ICT by Pen Men At Work  

June 30, 2010 (Pen Men at Work): A London Broker was banned from trading for five years as he made unauthorized trades while in drunken condition thus causing a spike in oil price.

Stephen Perkins, the accused trader was also hit with a £72,000 for his actions, which cost his company, PVM Oil, over £6 million.

On Tuesday, the Financial Services Authority (FSA) regulator passed on the punishments to Perkins, who bought millions of barrels of oil in drunken condition. It hiked the cost of Brent crude more than 2 dollars to an 8 month high.

The Financial Services Authority (FSA)’s director of markets Alexander Justham said, “The drunkenness of Perkins cannot justify his market abuse. He is not fit enough to regulate the activities and his behavior can risk the market so he has been banned.”

The unauthorized trading occurred following a drinking spree at a PVM golf weekend. Perkins continued drinking from the beginning of the week and the worst damage was made in the early hours of Tuesday.

Perkins bought a net 7.13 million barrels of oil drunkenly and the unusual high trading volume overnight caused the rise in price of oil.

Ultimately, Perkins admitted his loss done to PVM. Following this, the company suspended his trading access and sacked him. Perkins claimed that he was under the influence of an alcohol-induced blackout when the trade was done. But, before confession, Perkins lied to PVM. He is in rehab till then.

The huge loss done by Perkins cannot be justified by any reason. So his ban is from trading is quite reasonable and he deserves this.

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