Hong Kong Fines Merrill Lynch for Concealed Losses

$25 million loss hidden in trading account
By Newser Editors and Wire Services
Posted May 31, 2010 8:38 AM CDT
Hong Kong Fines Merrill Lynch for Concealed Losses
NEW YORK - SEPTEMBER 15: A woman walks outside Merrill Lynch's offices in the World Financial Center September 15, 2008 in New York City.   (Getty Images)

Hong Kong regulators have fined two units of Merrill Lynch $450,000 after an executive's concealment of losses in a trading account went undetected by the investment bank for nearly a year, Hong Kong financial authorities announced today. A Merrill Lynch managing director falsely marked a trading book in exotic options by manipulating its valuation model from December 2007 to October 2008, concealing actual losses in the account by inflating its value by $25 million, regulators said.
(Read more Hong Kong stories.)

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