Following my comments about the investigations into Barclays Bank staff earlier in the week, I can't resist this snippit from the FT: three former employees of NatWest have been charged with wire fraud, for underselling to NatWest their interests in a fund called Campsie which was an early investor in an Enron of-balance sheet partnership called LJM Cayman. Of course, while the activity of these thre, if proven, would seem highly reprehensible, the bigger question is, just what exactly were entities like Natwest doing during the Enron years?
The complaint alleges that the bankers carried out a scheme in late 1999 and early 2000 to defraud NatWest by causing it to sell its interest in Campsie for about $1m when its actual value was several times that amount.At the same time, the three obtained a portion of the NatWest interest for just $250,000 and sold it later for a personal profit of $7.3m, authorities allege.
Part of the evidence gathered by authorities included e-mails sent between the bankers.In an e-mail exchange with Mr Mulgrew, Mr Bermingham discussed splitting the spoils with Mr Fastow. "I will be the first to be delighted if he has found a way to lock it in and steal a large portion himself," the e-mail read. It continued: "We should be able to appeal to his greed."
Authorities said the investigation would continue.
Source: Financial TimesLINK