Citi trader blows $20 million

Talk about your oversight breakdowns, a rogue Citigroup Inc. trader lost $20 million for the largest U.S. bank by hiding more than $300 million of gold and silver contracts and reporting fake prices, the New York Stock Exchange's regulatory unit said.

Gail Edmonds had as much as $373 million of open positions, nearly 75 times her trading limit, before the bank discovered her misconduct in early 2003 and fired her, the regulator said on Wednesday.

The NYSE released documents describing Edmonds' activities in connection with its decision to fine New York-based Citigroup (C.N) $500,000 for failing to properly supervise its precious metals trading desk.

"We are pleased to have this matter resolved," said Citigroup spokeswoman Danielle Romero-Apsilos. "The firm took immediate action when the matter was discovered and we have since strengthened our internal controls."

The law firm representing Edmonds did not immediately return a call seeking comment.

http://www.washingtonpost.com/wp-dyn/content/article/2006/09/13/AR2006091301370.html