Arrested exec advised Lloyds
(26 March 2010 – UK) The managing director for Deutsche Bank’s corporate broking division, Martyn Dodgson, who was arrested earlier in the week, reportedly was part of the team responsible for advising the government on the capital raising required to pull Lloyds Banking Group out of the Asset Protection Scheme.
Earlier this week authorities in the UK arrested six men, including Deutsche Bank executive Martyn Dodgson, an employee of US hedge fund Moore Capital Management LP and an associate from a company affiliated with French bank BNP Paribas SA.
The arrests come as what the government is billing as a major crackdown on insider trading in London's financial centre.
Mr Dodgson is believed to have been a peripheral member of the advisory team that worked with the Treasury and UK Financial Investments to raise capital in an effort to release Lloyds from the Asset Protection Scheme, the Australian reported.
As part of his involvement in Lloyds capital raising he would have had access to the bank’s highly sensitive information about its plans to avoid the scheme and its capital raising plans; an insider trading on such information would have made millions when Lloyds announced that it could avoid the scheme and its share price soared.
Deutsche Bank declined to comment on Mr Dodgson's role in advising the Government, but emphasised that it is co-operating fully with the Financial Service Authority's investigation.
The arrests come as what the government is billing as a major crackdown on insider trading in London's financial centre.
Mr Dodgson is believed to have been a peripheral member of the advisory team that worked with the Treasury and UK Financial Investments to raise capital in an effort to release Lloyds from the Asset Protection Scheme, the Australian reported.
As part of his involvement in Lloyds capital raising he would have had access to the bank’s highly sensitive information about its plans to avoid the scheme and its capital raising plans; an insider trading on such information would have made millions when Lloyds announced that it could avoid the scheme and its share price soared.
Deutsche Bank declined to comment on Mr Dodgson's role in advising the Government, but emphasised that it is co-operating fully with the Financial Service Authority's investigation.
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