Investment bank Merrill Lynch today said it was investigating an “irregularity” within its trading operation in London.
The bank, now owned by Bank of America, has informed regulators and is working with authorities. Merrill Lynch would not comment on reports naming a London currency trader as the focus of the investigation.
A spokeswoman said: “During a recent evaluation of certain trading positions, we discovered an irregularity.
“We informed regulators immediately and are working closely with authorities to thoroughly investigate the matter.
“Senior managers of the business are focused on the issue and believe the risks surrounding possible losses are under control.”
A report in today's New York Timessaid a 38-year-old trader had gambled away $120 million of the bank's money.
