UBS lose 1.3 billion

[glasfryn]

another lose cannon trader loses his bank 1.3 billion
wonder who will have to pay for this mistake

 

[Racek]

Well if you are going to get the sack.................

 

[User removed 4]

His name is Kweku Adoboli, trading delta one apparently.

 

[sten_super]

As a pretty much complete banking ignoramus, can someone fill me in on exactly what he's done? It is just a case of him making a bad move and being hung out to dry? Or has he done something which is actually illegal?

 

[Tricky Dicky]

I remember when £1bn was a lot of money.

 

[Daddies_Sauce]

unauthorised trading - I guess his boss is for the sack for not knowing what his/her staff were doing, I also guess questions will also need to asked of the UBS internal processes and systems.

 

[Biscuit]

Have they checked the back of the sofa?

 

[bhafc99]

another lose cannon trader loses his bank 1.3 billion
wonder who will have to pay for this mistake

The average man and woman. City bonuses will continue unaffected.

 

[cunning fergus]

On the plus side I guess its positive that we are getting some diversity into the stuffy "white" world of corporate banking and finance fraud. Well done Kweku Adoboli.

 

[User removed 4]

The average man and woman. City bonuses will continue unaffected.

Would you like to have a bet on that ?? I guarantee that bonuses at UBS will be tiny, or zero, and UBS is a Swiss bank, why would the UK man on the street pay for the cost ? Granted , certain banks and certain areas of trading have a lot to answer for, but your post is indicative of a complete lack of understanding of investment banking, and how the city works.

 

[The Maharajah of Sydney]

The internal UBS memo:

Dear colleagues,

We regret to inform you that yesterday we uncovered a case of unauthorized trading by a trader in the Investment Bank. We have reported it to the markets in line with regulatory disclosure obligations. The matter is still being investigated, but we currently estimate the loss on the trades to be around 2 billion US dollars. It is possible that this could lead UBS to report a loss for the third quarter of 2011. No client positions were affected.

We understand that you have already had to contend with unfavorable, volatile markets for some time now. While the news is distressing, it will not change the fundamental strength of our firm.

We urge you to stay focused on your clients, who are counting on you to guide them through these uncertain times.

We want to reassure you that we, together with the rest of the management, are working closely with the Investment Bank’s management and risk and controlling to get to the bottom of the matter as quickly as possible, and will spare no effort to establish exactly what has happened. We will keep you updated on the progress of our investigation.

Yours,
The Group Executive Board

 

[mcshane in the 79th]

Not exactly going to inspire their big rich customers that their money is in safe hands if their risk prevention is seen as non-existant. Surely they'll have loads of customers jumpting ship now

 

[Danny-Boy]

If I were Mr Adoboli I wouldn't be planning a ski-ing holiday in the Swiss Alps this year....

 

[beorhthelm]

The average man and woman. City bonuses will continue unaffected.

added to bushy's points, even if it were a UK bank, they get bonuses based on profits. if this mean trading profits are hit by this, then bonuses would suffer. the banks dont pay out the bonues for giggles.

 

[wakeytom]

Would you like to have a bet on that ?? I guarantee that bonuses at UBS will be tiny, or zero, and UBS is a Swiss bank, why would the UK man on the street pay for the cost ? Granted , certain banks and certain areas of trading have a lot to answer for, but your post is indicative of a complete lack of understanding of investment banking, and how the city works.

Thank you for that, some people have such small minds / lack of wanting to understand what is happening in the real world, not what the Daily Mail / Express is telling them!

 

[Common as Mook]

Thank you for that, some people have such small minds / lack of wanting to understand what is happening in the real world, not what the Daily Mail / Express is telling them!

The Daily Mail/Express reference doesn't really fit in Bushy's case, but I agree entirely with your point

 

[CliveWalkerWingWizard]

The question is how can a trader make 'unauthourised' transactions of this amount - the fella will go to prison but surely the bank should have systems to know what traders are doing with their money.

 

[Jim D]

His name is Kweku Adoboli, trading delta one apparently.

It probably all started when he tried to make himself a couple of Ks to help out a fellow countryman who had millions in a frozen bank account and needed some cash to get it released. I'm sure he planned to return it when he got his share from the guy. These things have a way of going sour.