walkitout (walkitout) wrote,
walkitout
walkitout

rogue trader at UBS

I guess we'll be adding Kweku Adoboli to the list that includes men like Jerome Kerviel and Nick Leeson. UBS may have to declare a quarterly loss but says their capitalization is Just Fine, Thank You. Efforts to avoid additional regulation in the UK are likely to be impacted.

Here is Reuters coverage:

http://www.reuters.com/article/2011/09/15/us-ubs-supervision-idUSTRE78E40N20110915

But believe me, there's _plenty_ more where that came from.

Who is up the chain from the trader?

"Maureen Miskovic took over as chief risk officer at UBS at the start of the year. ... Miskovic, who is based in Zurich and directly reports to Chief Executive Oswald Gruebel, had been head of risk at State Street from 2008 to 2010. From 1996-2002, she was chief risk officer at Lehman Brothers ... Before that she worked at Morgan Stanley. ... UK citizen Miskovic replaced Philip Lofts, a UBS veteran who was promoted to head UBS Americas. She brought in Mark Sandborn as head of risk of the investment bank, who started in April."

Usually coverage of this kind of thing thins out after the first big announcement, but it is often worth paying attention to how the details develop.

ETA: Probably better coverage here:

http://www.ft.com/intl/cms/s/0/b6274186-dfb1-11e0-8e15-00144feabdc0.html

http://www.efinancialnews.com/story/2011-09-15/ubs-compliance-trade

This one is cool, because it isn't _just_ unauthorized trades -- it's a more general list of errors.

http://business.financialpost.com/2011/09/15/list-of-worlds-biggest-trading-debacles/

And this one points out that like Kerviel, this guy worked in backoffice (as a trade support analyst -- Kerviel was actually _in_ the compliance department at SocGen, IIRC, prior to becoming a trader).

http://www.efinancialnews.com/story/2011-09-15/kweku-adoboli

There's probably a moral here somewhere.
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