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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

osoab
15th September 2011, 04:07 PM
UBS Rogue Trader Had Been "Reduced To Watching Fox News For Guidance" (http://www.zerohedge.com/news/ubs-rogue-trader-had-been-reduced-watching-fox-news-guidance)


Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 09/15/2011 - 11:55 Ben Bernanke (http://www.zerohedge.com/category/tags/ben-bernanke) Correlation Desk (http://www.zerohedge.com/category/tags/correlation-desk) Eurozone (http://www.zerohedge.com/category/tags/eurozone) Fox News (http://www.zerohedge.com/category/tags/fox-news) Rogue Trader (http://www.zerohedge.com/taxonomy/term/9126) Tim Geithner (http://www.zerohedge.com/taxonomy/term/299) This could probably explain a lot. According to the FT, which has managed to sneak a peek into Kweku Adoboli aka, the scourge of UBS, Facebook profile, in a July 31 update said: "Will they? Won’t they? Reduced to watching Fox News for guidance, it’s a grim affair". It appears that Adoboli should thus be commended - under those conditions we believe it is a miracle a person's loss can be confined to just $2 billion. FT continues with the cyberstalking: " That was followed a week later amid steep market falls, by an entry that read: “Can we shut down global markets for a week so everyone can just chill out?” It also appears that the Delta One'er (which is just a fancy name for "correlation desk" trader) enjoyed his downtime as well: "He came across as someone who worked quite hard to get where he was and played quite hard too," said the acquaintance. Yet by all counts it appears that the event that did ole' Kweku in was the Swiss intervention on September 6: "However, the final message left by the trader on his own Facebook page on September 6 simply read “need a miracle”." Odd: so does Tim Geithner and the Eurozone. Alas, as the latest "rogue trader" incarnation just found the hard way, those are in short supply these days.

Neuro
15th September 2011, 04:17 PM
The bank lost $2 billions and blamed it on this guy. Any tribesmen ever rogue traders?

Twisted Titan
15th September 2011, 07:02 PM
The last rouge trader collapsed the global mArkets ....whatever happened to sociotal general?

osoab
15th September 2011, 07:13 PM
The last rouge trader collapsed the global mArkets ....whatever happened to sociotal general?

Well Capitalized! ;D

Ares
15th September 2011, 08:22 PM
So UBS really does mean Unauthorized Banking Scams

Or

Unlimited Banking Scandals

Or

Ugandan Bankruptcy Service

General of Darkness
15th September 2011, 08:52 PM
The best part is that the "rogue" trader is some idiot from Uganda. How's that multiculturalism working out Europe? Oh wait, it sucks balls in the U.S. also.