Finance 15 Sep 2011 09:02 am

Unauthorized Trades Cost UBS $2 Billion

by Sean Hackbarth

UBS office in Zurich
Hey CEOs, keep an eye on your employees or billions could go POOF like they did at UBS:

UBS AG, Switzerland’s biggest bank, said it may be unprofitable in the third quarter after a $2 billion loss from unauthorized trading at its investment bank.

London police arrested Kweku Adoboli, a UBS employee, in connection with the loss, according to a person with knowledge of the matter who declined to be identified. City of London police and UBS declined to identify the man.

UBS management aims to “get to the bottom of the matter as quickly as possible, and will spare no effort to establish exactly what has happened,” the bank’s group executive board, led by Chief Executive Officer Oswald Gruebel, said in a memo to employees today. “While the news is distressing, it will not change the fundamental strength of our firm.”

Trading desks aren’t like the “good old days” anymore.

UBS Has $2 Billion Trading Loss; Man Arrested in London”

[Picture via twicepix.]

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