26 February 2017
Visit EBAday.com

UBS 'rogue trader' Adoboli pleads not guilty

30 January 2012  |  5805 views  |  3 UBS web screen shot

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.

Comments: (3)

A Finextra member
A Finextra member | 30 January, 2012, 16:20

UBS 'rogue trader' Adoboli pleads not guilty ... How did the risk department plead? 

1 thumb up! 1 thumb up! (Log in to thumb up)
David Millar
David Millar - DXL Partners - Isle of Wight | 31 January, 2012, 08:10

No way Adoboli could do this on his own and fool his bosses, colleagues, risk and audit - he is no genius. But now, in pleading not guilty, it appears he is not prepared to be the scapegoat. It will be interesting to see what his defence is. It will be in UBS's interest to portray this as a single rogue trader incident whatever the consequence in regulatory fines, rather than admit others were involved.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 31 January, 2012, 09:05

Aoboli, isn't alone by the looks of things. After he was nabbed, several other members of his trading desk and the management directly above him resigned.

It appears is often the case, that the rogue trading event at UBS wasn't isolated to a single instance of malpractice.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UBS chief risk officer Miskovic replaced by predecessor

UBS chief risk officer Miskovic replaced by predecessor

01 December 2011  |  6198 views  |  0 comments
UBS admits to breakdown in risk control systems

UBS admits to breakdown in risk control systems

25 October 2011  |  8143 views  |  0 comments
UBS trading scandal investigation finds risk systems ignored

UBS trading scandal investigation finds risk systems ignored

06 October 2011  |  12410 views  |  3 comments
UBS trader charged with fraud

UBS trader charged with fraud

16 September 2011  |  6501 views  |  0 comments
Rogue trader costs UBS $2bn

Rogue trader costs UBS $2bn

15 September 2011  |  9543 views  |  2 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
http://www.financialcrimerisk.fiserv.com/aml?r=finextra

Who is commenting?

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
12759 views comments | 52 tweets | 72 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
8587 views comments | 40 tweets | 34 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
6934 views comments | 7 tweets | 4 linkedin
High rate of defaults hit P2P lending sectorHigh rate of defaults hit P2P lending sect...
6831 views comments | 18 tweets | 13 linkedin
hands typing furiouslyBlockchain Technology
6422 views 1 | 17 tweets | 7 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job