Drunk Morgan Stanley trader reprimanded

In February 2008, according to the U.K.'s Financial Services Authority and reported by Bloomberg, David Connor Redmond, then a trader in Morgan Stanley's commodities division, took an "extended lunch break...He drank alcohol over lunch and it appears that this affected his behavior on his return to the office, although he was not visibly drunk." Back at his desk, he built a large short position in oil futures. He managed to conceal the position overnight and exposed Morgan Stanley to the risk of a big loss.

The bank suspended him a day after he concealed his trading position, and later dismissed him. Redmond can apply for re-instatement in two years. So what's the moral here? Well, you can't really fault Morgan Stanley. Sobriety tests on the trading desk wouldn't go over well. At some point, you have to trust people. 

For more:
- here's the article

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