OZschwitz: Merrill Lynch accused of insider trading

One of the most famous names in global banking, Merrill Lynch, has been accused of insider trading by a member of a famous Sydney racing family.

David Waterhourse has alleged Merrill Lynch executives were involved in short-selling $55 million of blue chip Australian stocks in January last year, Fairfax newspapers reported on Saturday.

In a statement filed with the Victorian Supreme Court, Mr Waterhouse alleges Merrill Lynch subsidiary Berndale Securities seized control of How Trading, the options trading account he held with them, on January 14 last year, Fairfax says.

Four days later, Merrill Lynch reported a $US9.83 billion ($A12.54 billion) four-quarter loss.

In the four days before the announcement, Berndale used the How Trading account to short-sell $55 million of Australian shares.

Mr Waterhouse says the details were revealed to him by Merrill Lynch staff at a meeting before the US announcement was made.

How Trading and Berndale are involved in a $9 million dispute before the Supreme Court, Fairfax says.

LNK

OZschwitz: Merrill Lynch accused of insider trading

OZschwitz: Merrill Lynch accused of insider trading

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