UBS 'rogue trader' Adoboli pleads not guilty
30 January 2012 | 5703 views | 3
Kweku Adoboli, the UBS trader who is accused of racking up losses of $2.3 billion through unathorised trading activity at the Swiss bank, has pleaded not guilty to charges of fraud and false accounting at a court hearing in London.
Adoboli has been held in custody since the losses on the bank's Delta One trading desk were uncovered in September. The subsequent scandal led to the departure of UBS chief Oswald Gruebel and the co-heads of the Swiss bank's global equities business.
Upon his arrest Adoboli admitted that he had masked his losses through the creation of fictitous positions on other accounts. An internal investigation by the bank eventually discovered failings in internal controls and risk systems that allowed the trades to take place.
A weekend report in the Wall Street Journal says that UK and Swiss regulators are conducting their own investigations and may penalise the bank for serious shortfalls in systems and oversight of its dealing activity.