October 26, 2007 / 5:38 AM / 10 years ago

Ex-RBC trader says colleagues mismarked bonds -WSJ

NEW YORK, Oct 26 (Reuters) - A former Royal Bank of Canada (RY.TO) trader alleged in emails to senior executives that some of his colleagues mismarked government and corporate bonds to boost profits at its New York-based investment banking unit, the Wall Street Journal reported on Friday.

“Losses have been intentionally hidden over the last five months,” Gregory O‘Connor told a top RBC official in a July 24 email, according to the Wall Street Journal.

Last month, RBC saw $40 million in trading losses, $13 million of which was related to bonds O‘Connor said were mispriced, the Wall Street Journal said.

    RBC fired O‘Connor on Thursday, the newspaper reported.

    “Mr. O‘Connor knows full well that the firm took pains to carefully investigate the facts and took remedial action,” RBC said in a statement, the Wall Street Journal reported.

    “He is choosing to distort facts and damage the firm’s reputation for personal gain.”

    RBC did not immediately return calls for additional comment.

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