Te corridors of power …

Young, readers may recall, was a fund manager with Deutsche Morgan Grenfell at around the time that Leeson was digging himself into a hole in Singapore.

These days, Young is better remembered for turning up in court dressed as a woman and asking to be addressed as Elizabeth. Press reports refer to Young as ‘a 6ft bespectacled transsexual City fund manager’.

Young faced fraud charges over multi-million pound losses at Deutsche Morgan Grenfell, but a jury decided that he was unfit to stand trial.

They heard evidence of attempted self-surgery of the sort that cannot be described in a respectable financial journal.

Specimen charges were recently put to a jury at the Old Bailey in a ‘trial of the facts’. This ended with a verdict of ‘guilty’: the jury agreed that Young had cleverly used warrants to fleece Deutsche Morgan Grenfell of millions of pounds, siphoning the money away into a bank account in Jersey.

Young will not go to prison, but faces either a hospitalisation order or guardianship order. He is reportedly living with his brother in Surrey.

Ernest Saunders, jailed for his role in the Guinness Affair, was released early from prison after a doctor diagnosed pre-senile dementia. In tests, he had difficulty walking and was unable to repeat three numbers backwards.

Saunders later made a seemingly miraculous recovery, although he has always insisted that his condition was misdiagnosed. There appears to be no such doubt in the case of Peter Young.

  • aJon Ashworth, business features editor at The Times.

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