Kweku Adoboli, an ETF trader in the London branch of UBS, has been arrested in connection with unauthorised trading which lost the bank US$2bn.
The bank's chief executive, Oswald Grübel sent a letter to staff on Thursday (which was made public by the Financial Times) stating that it had "uncovered a case of unauthorised trading by a trader in the Investment Bank. We have reported it to the markets in line with regulatory disclosure obligations. The matter is still being investigated, but we currently estimate the loss on the trades to be around US$2bn." The trades mean that the bank could report a loss for Q3 2011, however Grübel said that it "will not change the fundamental strength of our firm" and that no client positions wer...
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