FSA bans former TD credit trader

The Financial Services Authority announced today that it has banned former Toronto-Dominion credit trader Nabeel Naqui and fined him £750,000 ($1.2 million) for mis-marking his book of credit indices and index tranches and altering prices. When interviewed by the UK regulator, Naqui admitted that he had altered traders’ pricing runs but said he had done so for legitimate reasons. However, the FSA ruled that he had engaged in misconduct, and said that the changes in his book were to cover up for losses, which consistuted most of a CAD96 million ($95 million) write-down by TD.