ADV-NEWS, A city trader has gone missing after quitting his job, prompting fears of a financial crisis at one of Britain's biggest banks. Global Bank Meltdown Alert/Watches and Warnings in effect
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Global Bank Meltdown Alert/Watches and Warnings in effect
City trader vanishes after investment collapse, prompting fears of another Nick
Leeson
By COLIN FERNANDEZ AND GALEN ENGLISH
Last updated at 11:21am on 27th August 2007
A city trader has gone missing after quitting his job, prompting fears of a
financial crisis at one of Britain's biggest banks.
Edward Cahill, 33, walked out of Barclays Capital following the collapse of
investment schemes under his control worth millions of pounds.
His disappearance has revived memories of the trader Nick Leeson, who infamously
fled Barings Bank in 1995 after losing £830million of the firm's money, leading
to its collapse.
Mr Cahill resigned on Thursday and has not been seen since at the £1million flat
in London's Docklands he shares with his brother Michael, 28, a graphic
designer.
Colleagues have been "frantically" trying to find him.
Mr Cahill, who was known as "Captain Sensible" because he was considered a safe
pair of hands, joined Barclays Capital in 2004, where he was European head of
collateralised debt obligations - the parcelling up of loans and selling them
on.
However, many of these multi-millionpound financial packages are thought to have
become worthless as a result of the credit crisis in the U.S.
Mr Cahill's resignation at a time of general anxiety in the financial markets
has led to speculation that the bank may have suffered heavy losses.
His brother Michael said: "I hope my brother is not the next Nick Leeson. I have
no idea where he is but it is not unusual for him to go off at times for days on
end.
"None of the family has heard from him, but we are not alarmed because this is
nothing unusual for Edward. In fact, it has even been known for him to forget
about paying his bills on time."
Mr Cahill was also a director of a Dublinbased finance firm, Euro Matrix Fund.
It is understood the other two directors of the company, Werner Schwanberg and
Mirja Wensky, held an emergency meeting on Friday to investigate if their firm's
funding was still secure.
Mr Schwanberg said he had been "frantically trying to contact Mr Cahill without
success". He added: "As far as we are aware our funds are safe. Barclays are the
main sponsors of our funding."
A Barclays Capital spokesman said the idea Mr Cahill was a new Nick Leeson "was
just stuff and nonsense".
A source at the bank said: "He would never have been in a position to do
anything like Leeson."