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UBS $2 billion rogue trade suspect held in London
Swiss bank UBS said a trader had lost the company around $2 billion (£1.27 billion) in unauthorised deals. London police have arrested 31-year old Director of Exchange Traded Funds Kweku Adoboli in connection with the case.
This has promoted concerns for the future of the investment back following comments that UBS it might post a third-quarter loss after the rogue trades. The loss effectively cancels out the $2 billion that the bank had hoped to save in a cost-cutting programme announced last month in which it will axe 3,500 jobs.
It also threatens the future of UBS's investment bank, which is being reviewed by chief executive Oswald Gruebel as part of a wide-ranging restructuring following heavy losses in the credit crisis and a damaging scandal over bankers helping rich U.S. clients dodge taxes.
UBS, which said no client positions were affected, is scheduled to hold an investor day on November 17 at which it was expected to announce major restructuring of the investment bank. As a result, UBS shares were down 8.2% at 10.03 Swiss Francs at 11:34 a.m. BST, while the European banking sector was up 2.8%.
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Swiss bank UBS said a trader had lost it around $2 billion (£1.27 billion) in unauthorised deals. London police have arrested 31-year old Director of Exchange Traded Funds Kweku Adoboli in connection with the case.
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