Financial Times Deutschland has reported that WestLB has suspended two more staff following an internal investigation into the a share trading scandal that is said to have resulted in losses of up to $134m.

WestLB said last month that it would file criminal complaints against two former prop traders and third parties following allegations of the manipulation of shares prices and the subsequent trading loss. According to the newspaper, two additional employees have been suspended in the last two weeks or so - a member of WestLB's compliance department and someone from risk management.

And French bank BNP Paribas has been fined $697,300 by UK regulator The Financial Services Authority (FSA) for anti-fraud weaknesses at its private banking operation. Lack of controls and a flaw in the bank's IT system apparently enabled a former employee to steal almost $2.8m from client accounts between February 2002 and March 2005. Basic checks on signatures and authorisations are also said not to have been in place.

Margaret Cole, the FSA's Director of Enforcement, said that the private banking arm's 'failures exposed clients' accounts to the risk of fraud. This is a warning to other firms that we are raising our game in this area and expect them to follow suit. We will not hesitate to take action against any firm found wanting'.

BNP Paribas has taken steps to correct the failings at its private bank, and no customers ultimately sustained losses as a resut of this affair.

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