Normally tranquil Switzerland is in turmoil today at revelations that a London-based rogue trader for UBS has created a $2 billion loss from what is said to be unauthorized trading. Kweku Adoboli, a 31-year old trader at UBS, has been arrested by City of London police in connection with scandalous losses. The matter is deeply troubling to local politicians and the worldwide economy as UBS has said it may be unprofitable in the third quarter because of it. UBS tumbled as much as 9.6 percent in Swiss trading following the announcement. The question being asked was how such an important institution could be so inept as to have allowed this large loss to occur essentially under the nose of the bank’s managers. UBS stands for Union Bank of Switzerland. The Telegraph.
