Investigation launched over UBS ‘rogue trader’
The Financial Services Authority is to investigate the alleged £1.3bn fraud at Swiss banking giant UBS, as the man accused with false accounting breaks down in a London court.
FSA investigators will work in tandem with the Swiss Financial Market Supervisory Authority.
Trader Kweku Adoboli who is accused of fraud and two charges of false accounting, broke down in court earlier as he was charged in connection with the huge loss at the bank. One of the charges dates back to 2008, while he was working at the Swiss banking giant, UBS.
The 31-year-old from Clark Street in Bethnal Green, east London, was remanded in custody and will appear at the City of London Magistrates Court in September.
After hearing from the Crown Prosecution Service (CPS) David Levy, chief magistrate Carolyn Wagstaff told Mr Adoboli: “You are remanded to appear back at this court on September 22 at 10am.”
Wearing a sky blue sweatshirt and an open-necked white shirt, Mr Adoboli stared at his feet as he was ushered back to his cell.
The son of a former Ghanian official for the United Nations, Mr Adoboli was arrested at his desk at around 3.30am on Thursday morning.
Sue Patten, head of the CPS Central Fraud Group said: “Lawyers from the CPS Central Fraud Group have today, September 16, authorised City of London police to charge 31-year-old Kweku Adoboli with fraud by abuse of position and false accounting.”
A statement from the City of London Police said the CPS authorised the charging of Mr Adoboli just before 1pm this afternoon.
“City of London Police has since charged the 31-year-old with fraud by abuse of position and false accounting.”
Mr Adoboli is named as director of Exchange Traded Funds (ETF) and Delta 1 Trading at UBS Investment Bank in his LinkenIn profile. ETFs are an investment fund traded on stock exchanges, which hold assets such as stocks, commodities or bonds.
‘Massive’ savings ahead for UBS
UBS saw its shares fall by 10 per cent yesterday after the loss of £1.3 billion from unauthorised trading was revealed. Stock was three per cent higher today.
The bank had already suffered from global growth fears and last month said it would have to reduce staff by 3,500 over the next two years in an attempt to save £1.5 billion.
Reports in a Swiss newspaper said that UBS, which employs 6,000 staff in the UK, will cut jobs at its investment banking unit with “massive” savings due to be announced on November 17.
Tighter regulation
The disclosure of unauthorised trading at the bank has resulted in a repeat of calls for tighter regulation in the banking industry.
The credit ratings agency Moody’s said it would be reviewing UBS’s rating following the incident, focusing on “ongoing weakness” in the Swiss bank’s risk management.
