FSA launches insider dealing investigation for UK bank
LONDON – The UK Financial Services Authority (FSA) is investigating alleged insider dealing at Bradford & Bingley, according to a report in the Daily Telegraph.
The UK bank has been suffering from the fallout of the US subprime crisis and ensuing credit crunch. It issued a profit warning earlier this week, and has been forced to sell 23% of its stock to a US private equity house, Texas Pacific Group, at a heavily discounted price. The bank’s chief executive also recently resigned due to a heart complaint, amid rumours of mismanagement and liquidity concerns.
The FSA will probe apparently suspicious share sales last week. The bank's shares fell by 8.5% last Thursday and a further 7.5% on Friday, before the Texas Pacific shares purchase and the profit warning was made public.A spokesman for the regulator confirmed that Bradford & Bingley was under investigation.
More on Regulation
Liquidity is down and costs are up, compliance experts complain
Dealers cheer decision to limit affected counterparties
Agency races to add staff by September 30 amid budget uncertainty
Advanced data analytics plays major role in SEC risk assessment
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.