Rogue Trader hits UBS for $2B...

[HipChick]

http://www.msnbc.msn.com/id/44530009/ns/business-world_business/?gt1=43001

Rogue trading has struck again, costing one of Europe's largest banks up to $2 billion and dealing a blow to its reputation.

London police said Thursday they had arrested 31-year-old Kweku Adoboli, a trader at UBS AG, in connection with alleged unauthorized trades that caused a loss of some $2 billion at the bank. UBS declined to confirm his name.

The bank said the trades would likely cause it to report a loss in the third quarter of 2011. "The matter is still being investigated, but UBS's current estimate of the loss on the trades is in the range of $2 billion," the bank said in a statement just before the stock market opened.

"It is possible that this could lead UBS to report a loss for the third quarter of 2011. No client positions were affected," it added.

Worse, it raised concerns among investors about the bank's controls and risk management. Shares of UBS tumbled in European trading.

[DJ13]

1. He was probably called 'rogue' because the bet didnt pan out

Successful bets make for new executives.

Unsuccessful bets makes him a criminal.

[KansDem]

7. That reminds me of a plot for a TV drama back in the 1970s...

A corporate CEO was robbed by the "good guy." He was the "good guy" because the CEO ripped off $10,000,000 from him and he couldn't get it back by legal means. So he goes into the CEO's office after hours to blow the safe.

It was an intricate plot. But he stumbles onto the CEO and his secretary "working late." He puts them in the safe and takes the money and only the amount he's owed, leaving mounds of cash in the safe. He locks them in the safe when he leaves (there's no danger of them suffocating).

Anyway, he hears later on the radio that the CEO and his secretary were freed and the CEO reported to police that the corporation got robbed of $12,000,000 and the "good guy" just shakes his head.

We can only guess where the extra $2,000,000 disappeared to...:)

[JoePhilly]

2. Phil Gramm?

[Warren DeMontague]

3. they make great ports. I've got several of them on my computer right now.

Oh, sorry, that's "USB".

[dipsydoodle]

4. Wanna know what the irony is ?

It was trades which concerned the value of the Swiss Franc.
:rofl:

[banned from Kos]

6. Currency trading is like Russian Roulette.

I am a trader (equities, options, etc) and will not go near currency trading due to the leverage they allow.

[whistler162]

5. again! Some of the ain't not the britest people that keep

letting this happen.

[formercia]

8. ...and still gets a Bonus.....

No, wait...:rofl: