UBS LOST $2.3 billion - rogue trader

I lost control: Accused UBS rogue trader

Published: Tuesday, Oct 30, 2012, 21:13 IST 
Agency: Reuters  Former UBS trader Kweku Adoboli told a London court on Tuesday he had "lost control" of his trading in the summer of 2011 but insisted he never acted dishonestly in the frantic weeks that resulted in losses of $2.3 billion.

Adoboli also attacked the culture of investment banks, arguing that compliance rules were "aspirational" and that traders knew they had to bend rules to achieve the goals set by senior management. The 32-year-old British-educated Ghanaian, who used to be a senior trader on the Exchange Traded Funds (ETFs) desk at UBS's London offices, was arrested on September. 15, 2011.He denies two counts of fraud and four of false accounting.

The prosecution says he traded far in excess of his risk limits and concealed his positions with fictitious accounting. Adoboli says everything he did was for the benefit of UBS. The ex-trader said his troubles started on July 1, 2011, when, under intense pressure from fellow traders and managers, he abandoned a long-standing bearish stance and flipped his trading position to a long one.

Just after he did so, the market started to sell off. "I lost control. The result of that loss of control was an increasing number of breaks (accounting problems), a more frantic trading activity, a less controlled decision-making process," he said...http://www.dnaindia.com/world/report_i-lost-control-accused-ubs-rogue-trader_1758131

'Rogue trader' weeps as tells court he acted for good of UBS

Published: Friday, Oct 26, 2012, 23:25 IST 
Place: London | Agency: Reuters

Former UBS trader Kweku Adoboli wept on Friday as he told a jury that his "off-book" trading was done for the benefit of the bank that meant everything to him. Addressing the court for the first time in his long-running trial in London, Adoboli said he had no reason to believe he was doing anything wrong since he was doing it to generate profits and colleagues knew about it.

"UBS was my family and every single thing I did, every single bit of effort I put into that organisation, was for the benefit of the bank," said Adoboli, his voice breaking as he wept and thumped the witness box with his hand. "That is everything I lived for ... To find yourself in Wandsworth Prison for nine months because all you did was worked so hard for this bank," he said through tears.

The 32-year-old British-educated Ghanaian was arrested on September 15, 2011, and blamed for losses of $2.3 billion. He was in custody until he was granted bail in June 2012. He has pleaded not guilty to two counts of fraud and four of false accounting, covering the period between October 2008 and September 2011.

The prosecution says Adoboli traded far in excess of his authorised risk limits, concealed his unhedged positions by booking fictitious hedges, and lied to the back office when asked questions about his accounts. Adoboli said he had developed an accounting mechanism he called his "umbrella" which allowed him to keep certain trades and the profits they generated "off-book".http://www.dnaindia.com/money/report_rogue-trader-weeps-as-tells-court-he-acted-for-good-of-ubs_1756610