Lloyds Banking Group has fired a 'rogue trader' after it uncovered a scheme designed to inflate the executive's bonus.
The Telegraph reports the executive, Frank Kornmann, worked in the state-backed lender's investment banking arm as head of hybrid foreign exchange and interest rate trading.
The report said the irregular trades were discovered in 2011 in a portfolio of 'complex financial products' which have lost £37m in the past two years. He was fired from the bank, which is 41% owned by the state, in February, last year.
Another member of staff was also sacked following the incident.
Kornmann was found to have falsified trading records to hide loss-making positions, it said.
The bank passed details to the Financial Services Authority, but no further action was taken due to Lloyds' prompt action.
Clarke replacing Balkham
'Deep-dive analysis of client behaviour'
Ways to mitigate April’s increases
The best equity income funds examined