Malcolm Calvert: insider-trading conviction stains blue-blooded Cazenove

Former Cazenove partner, Malcolm "Streaky" Calvert, has been convicted of five counts of insider trading. Could the case be a turning point for the FSA?

"Be afraid, very afraid," was Financial Services Authority (FSA) chief Hector Sants' theatrical warning to the City in 2008. And this week the City watchdog was quietly celebrating its first big scalp, says the FT. Former Cazenove partner, Malcolm "Streaky" Calvert, has been convicted of five counts of insider trading. The FSA's satisfaction at securing a guilty verdict against a former employee of the "bluest of Square Mile blue-bloods" was palpable. It's certainly a big embarrassment for Cazenove, which numbers the Queen among its clients, says The Daily Telegraph. Calvert, 65, retired from the firm in 2000. Although not directly accused of any wrongdoing, Cazenove was "the common denominator", said the prosecution. It acted on all six of the proposed corporate deals on which Calvert took punts and his conviction "leaves many unanswered questions".

Contrary to popular belief, Calvert a renowned racing punter was never nicknamed Streaky because of his luck in betting, says The Times. The name dates back to 1961 when he joined Cazenove as a 16-year-old school-leaver, graduating from the post-room to become a 'blue-button' on the floor of the old Stock Exchange. Everyone had a nickname. A jovial broker with a bald head was called Moonbeam; another, skilled in moving in and out of stocks quickly, was The Snake. Calvert, "thin as a rasher of bacon and lightning fast across the exchange floor", quickly became Streaky. He was a popular, even "revered" figure at Cazenove, although he was far from a typical recruit. He rose to head of market-making and was the first dealer in the firm to be made a partner.

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