Trader Arrested In Connection with UBS’ $2B Loss

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London police have arrested a UBS trader in connection with a $2 billion loss suffered by the Swiss bank.

Kweku Adoboli was charged with committing fraud by abusing his position and false accounting, The Wall Street Journal reported.

The $2 billion in losses using the firm's own money raised new questions about the ability of one of the world's largest banks to manage risk, and global regulators' ability to monitor it.

Risk-control officers at UBS discovered unauthorized trades allegedly made by Mr. Adoboli, who then admitted to the trades by sending an e-mail to managers at the bank.

UBS have been trying to fix its crippling situation since 2008, when the financial crisis hit the industry hard, and deal with recent losses that have added to firm’s already-dire circumstances.

Earnings at UBS fell to 1 billion francs in the second quarter, from 2 billion francs during the same period a year earlier, according to The New York Times.

Go to Wall Street Journal article

Go to New York Times article