The Deutsche Bank executive arrested on Tuesday over alleged insider dealing advised the Government on financial stability at the height of the financial crisis.
Martyn Dodgson, a managing director in Deutsche's corporate broking division, is understood to have been part of the Deutsche team advised the Treasury and UK Financial Investments last year on capital raising for the Lloyds Banking Group, which allowed the taxpayer-backed lender to pull out of the Asset Protection Scheme, the Times reports.
Although Dodgson was only a peripheral member of the advisory team, he would have had access to highly sensitive information about Lloyds' plans to avoid the scheme and its capital-raising plans weeks before the details were announced.
An insider trading on such information would have made millions when Lloyds announced it could avoid the scheme and its share price soared. It is believed he also advised on the original bailout of the banking sector in autumn 2008.
Dodgson was one of six people to be arrested on Tuesday in the UK's biggest insider-dealing case. He joined Deutsche 15 months ago, having previous worked for Lehman Brothers and Morgan Stanley.
insider dealing
This should not come as any surprise. This just proves the true value of knowledge. I understand that this is illegal but lets be honest if anyone had a good information if either the stockmarket, a company or even a horse race who would not use that information to financially benifit its called survival of the fittest
Posted by: rlundon
25 Mar 2010 | 11:25
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