Ponce
15th September 2011, 04:00 PM
Tow things of interest.....the "investor" was black and......USB are going to laid off 3,000 workers to make up for the lost money........but......last year they made 4 billions profit.
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Zurich, Switzerland (AHN) - Swiss bank UBS disclosed on Wednesday that its investment banking arm lost about $2 billion because of unauthorized banking.
The bank did not provide much detail about the loss, except to admit the problem and announce an ongoing investigation.
UBS did not identify the branch location where the rogue trading took place, although it is known to have a major presence in London.
UBS assured client positions were not affected by the illegal trading, but acknowledged the transaction could lead to a loss for the banks third quarter report.
News of the loss caused UBS shares to drop by almost 10 percent in early morning trading on Thursday.
Analysts said the loss would worsen public distrust of the banking sector and raise more questions about regulatory capital and the presence of ringfences to prevent a repeat of the incident.
Another analyst said the admission of loss is an indicator of UBS's problem with risk management and one opined the rogue trader was probably in derivatives.
UBS was regaining client confidence this year after it suffered major losses on toxic assets held by the bank's investment arm and had to be rescued by the Swiss government in 2008.
The $2-billion loss ironically was announced on the third anniversary of the Lehman Brothers and the release this week of the report by Sir John Vickers, who recommended that banks separate retail business from investment banking operations which is riskier to protect depositors in a financial crisis.
http://beforeitsnews.com/story/1101/067/UBS_loses_2_billion_on_unauthorized_trading.html
================================================== =
Zurich, Switzerland (AHN) - Swiss bank UBS disclosed on Wednesday that its investment banking arm lost about $2 billion because of unauthorized banking.
The bank did not provide much detail about the loss, except to admit the problem and announce an ongoing investigation.
UBS did not identify the branch location where the rogue trading took place, although it is known to have a major presence in London.
UBS assured client positions were not affected by the illegal trading, but acknowledged the transaction could lead to a loss for the banks third quarter report.
News of the loss caused UBS shares to drop by almost 10 percent in early morning trading on Thursday.
Analysts said the loss would worsen public distrust of the banking sector and raise more questions about regulatory capital and the presence of ringfences to prevent a repeat of the incident.
Another analyst said the admission of loss is an indicator of UBS's problem with risk management and one opined the rogue trader was probably in derivatives.
UBS was regaining client confidence this year after it suffered major losses on toxic assets held by the bank's investment arm and had to be rescued by the Swiss government in 2008.
The $2-billion loss ironically was announced on the third anniversary of the Lehman Brothers and the release this week of the report by Sir John Vickers, who recommended that banks separate retail business from investment banking operations which is riskier to protect depositors in a financial crisis.
http://beforeitsnews.com/story/1101/067/UBS_loses_2_billion_on_unauthorized_trading.html