A trader who returned from a three-hour lunch involving alcohol and racked up big positions in oil futures, trading every seven seconds for two hours, and then concealed the trades from employer Morgan Stanley, today put the bank at the centre of the second such scandal in the space of a week.

The Financial Services Authority banned former freight and oil trader David Connor Redmond after he took out a large short position in West Texas Intermediate oil futures while under the influence of alcohol. He then sought to conceal the trades from Morgan Stanley after realising they would breach the bank's value-at-risk limits. He has been banned for two years.