Fri Oct 28 04:31:03 SAST 2016
Order restored at Sun City Prison after fiery protest over inmates’ TVs

Correctional Services said that “matters are under control” at Johannesburg’s Sun City Prison on Wed.

Drunk broker hikes oil price, gets the sack

By Sapa-AFP | Jul 21, 2010 | COMMENTS [ 0 ]

The City of London watchdog has handed a five-year ban to a rogue oil broker who made unauthorised trades that caused a spike in oil prices after a weekend of heavy drinking

Stephen Perkins was also hit with a R800,000  fine following his actions that cost his company, PVM Oil, more than six million pounds.

The Financial Services Authority (FSA) regulator handed down the  punishments.

The incident took place in June last year when Perkins drunkenly bought millions of barrels of oil, which pushed up the price of Brent crude more than two dollars to an eight-month  high.

“Perkins’ drunkenness does not excuse his market abuse,” said Alexander Justham, the Financial Services Authority (FSA)’s director of markets.

“Perkins has been banned because he is not a fit and proper person to be involved in regulated activities and his behaviour posed a risk to the proper functioning of the market.”  

The unauthorised trading took place after a drinking binge at a PVM golf weekend.

Perkins continued drinking at the start of the week and the most serious damage was done in the early hours of Tuesday. The broker drunkenly purchased a net 7.13 million barrels of oil. The unusually high trading volume in the typically quiet overnight period sent prices surging.

He eventually admitted what he had done to PVM, which suspended his trading access, fired him and sold off the rest of the oil.  Perkins claimed that he was in an alcohol-induced blackout when he made the trades, according to the FSA.

The regulator made no criticism of PVM.



Login OR Join up TO COMMENT