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NATWEST Markets has suspended four of its senior managers following the discovery of mispricings on its interest rate options book.
The move follows the results of a preliminary enquiry by Linklaters & Paine and Coopers & Lybrand which has led to NatWest taking a charge of L77m against pre-tax profits, up from the L50m announced immediately after the discovery of the loss two weeks ago.
NatWest Markets chairman Martin Owen has also volunteered to give up L200,000, or 40% of his performance related bonus for 1996.
"It is intended to be an act of leadership," Owen told Euroweek. The bank has also accelerated the changes in its debt division, long expected as a consequence of the acquisition of Greenwich Capital.
Four out of 10 of the new divisional head posts go to Greenwich staff.
The four NatWest staff suspended after the initial inquiry are: Ian Gaskell, head of swap options trading (UK and Europe); Christophe Lanson, global head of rate risk management; JeanFrancois Nguyen, managing director, debt derivatives; and Phil Wise, chief administrative officer and formerly senior managing director, capital markets.
Neil Dodgson,...