Former RBS Head CDO Trader Sues for Unfair Firing at Tribunal
By Kit Chellel - Feb 4, 2013 8:03 AM ET
Royal Bank of Scotland Group Plc’s former head trader for collateralized debt obligations is suing for unfair dismissal at an employment tribunal.
The case, filed by Alex Mallinson, is complicated by “ongoing investigations by the bank in respect of other employees” and two other tribunal claims by Mallinson’s colleagues on the CDO desk, RBS lawyer Diya Sen Gupta said at a London employment tribunal hearing today.
A pedestrian walks past the Royal Bank of Scotland Group Plc’s headquarters in London. Photographer: Simon Dawson/Bloomberg
Mallinson has made clear that he may file a separate High Court claim against the bank for more than 1 million pounds ($1.6 million), Sen Gupta told the tribunal. She didn’t provide details about the bank’s investigation or why the three employees were fired.
As job cuts at financial services companies reach a four- year high, a growing number of fired bankers are taking to London courts to seek compensation. A depressed banker from Credit Suisse Group AG, a fired UBS AG trader and a Credit Agricole SA (ACA) whistle-blower all sued last year saying they were unfairly treated.
The hearing continues tomorrow after a break for employment judge Paul Stewart to review documents in the case.
Mallinson joined RBS in 2002, according to the Financial Services Authority’s website. He left the bank in July and now works at Chalkhill Partners LLP.
“The bank does not accept that there is substance to Mr. Mallinson’s claim and will be defending it.” RBS spokeswoman Rebecca Nelson said in an e-mail. Mallinson’s lawyer Danielle Spiers didn’t immediately respond to an e-mail seeking comment.
Collateralized debt obligations package bonds or loans into a pool of assets that are divided into tranches of varying risk and return.
Compensation for unfair dismissal is normally capped at 74,200 pounds at U.K. tribunals, unless there is proof of discrimination or other wrongdoing.
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