UBS could be hit with a record penalty by the Financial Services Authority (FSA) next week following the rogue trade which cost the bank $2.3bn.
The Swiss bank is reported to be "ready to settle" with the FSA which has restarted its enforcement procedures after the criminal case against Kweku Adoboli, the "master fraudster" behind the trade, ended with him being jailed for seven years earlier this week. The fine is likely to be "tens of millions" of pounds because of UBS' multiple failures of systems, controls and supervision that allowed Adoboli to clock up £1.4bn of losses - the largest unauthorised trading loss in British history. While the largest fine ever for systems failures was £8m - bought against UBS Wealth Managemen...
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