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Fear over Morgan inquiry

City watchdog the Investment Management Regulatory Organisation (Imro) is to press ahead with disciplinary action against Deutsche Morgan Grenfell in the new year. However, steps against rogue fund manager Peter Young will be delayed until the Serious Fraud Office has revealed its hand, writes Paul Farrelly.

Most City observers are expecting DMG to receive a record fine of over pounds 1m because of the affair, on top of the pounds 200m compensation to investors it agreed with Imro on Friday. DMG's parent, Germany's Deutsche Bank, has also already pumped in pounds 180m to make good losses on Mr Young's irregular dealings, which were discovered in September.

Since then, top executives have also resigned after taking management responsibility for the affair.

This weekend an Imro spokeswoman said others apart from Mr Young might also be subject to disciplinary proceedings, and she was confident that action against the bank itself would be completed by the end of March.

City observers voiced concerns that the delays in the SFO's investigation might mean that the culprits could escape or take years to be brought to book.