FSA to investigate UBS 'rogue trader' losses

Scott Sinclair
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The FSA and the Swiss Financial Market Supervisory Authority (FINMA) are launching an independent investigation into the events surrounding the huge trading losses incurred by UBS, allegedly as a result of the actions of 'rogue trader' Kweku Adoboli.

The investigation, to be conducted by a third party firm independent of UBS, will focus: on the details of the unauthorised trading activity; on the control failures which permitted the activity to remain undetected; and will include an assessment of the overall strength of UBS's controls to prevent unauthorised or fraudulent trading activity in its Investment Bank. Adoboli, a trader alleged to have lost the company some $2bn (£1.3bn) in unauthorised trading, was today charged with fraud. UBS said it may report a third quarter loss due to the losses incurred. The BBC repo...

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