The 2011 UBS rogue trader scandal caused a loss of over US$2 billion at Swiss bank UBS, as a result of unauthorized trading performed by Kweku Adoboli, a director of the bank's Global Synthetic Equities Trading team in London in early September 2011.[1][2]
On 24 September 2011, Oswald Grübel, the CEO of UBS, resigned "to assume responsibility for the recent unauthorized trading incident", according to a memo to UBS staff.[3][4] On 5 October Francois Gouws and Yassine Bouhara, the co-heads of Global Equities at UBS, also resigned.[5] It later emerged that UBS had failed to act on a warning issued by its computer system about Adoboli's trading.[6][7][8]
After two delays requested by Adoboli and a change of legal representation, Adoboli pleaded not guilty to two counts each of fraud and false accounting on 30 January 2012. He was released on conditional bail after a bail application at Southwark Crown Court on 8 June 2012. He was later convicted of both counts of fraud and sentenced to seven years imprisonment. He appealed against both conviction and sentence.[9]
- ^ Frank Jordans. "Rogue trader causes US$2 billion loss at UBS". Associated Press. Archived from the original on 5 November 2012. Retrieved 15 September 2011.
- ^ Megan Murphy (15 September 2011). "UBS trader Adoboli held over US$2bn loss". Financial Times. Retrieved 15 September 2011.
- ^ Cite error: The named reference
Oswaldwas invoked but never defined (see the help page). - ^ Cite error: The named reference
Oswald2was invoked but never defined (see the help page). - ^ "UBS Equities Chiefs Resign in Wake of Scandal Archived 7 May 2018 at the Wayback Machine" 5 October 2011
- ^ "Computer Weekly 6 Oct 2011". Archived from the original on 8 October 2011. Retrieved 10 October 2011.
- ^ "IT-World 7 Oct 2011". Archived from the original on 12 October 2011. Retrieved 10 October 2011.
- ^ King, Leo (6 October 2011). "UBS: Our risk systems did detect £1.3bn rogue trader". Computerworld UK. Archived from the original on 29 May 2012. Retrieved 11 February 2022.
- ^ "Former UBS trader Kweku Adoboli to appeal against fraud conviction". The Guardian. London. 1 March 2013. Archived from the original on 27 September 2016. Retrieved 10 December 2016.
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