Friday, September 14, 2012

Rogue UBS AG (NYSE:UBS) trader Was Trying to Enrich Himself

UBS AG (USA)(NYSE:UBS) trader Kweku Adoboli, on trial for nearly bringing down the Swiss Bank, had doctored the books of accounts, and lied to his bosses, a prosecuting lawyer deposed before a court in London on Friday.

Adoboli, who has been held responsible for defrauding the bank to the tune of $2.3 billion, had pleaded not guilty to the charges against him.

Sasha Wass, the prosecuting lawyer, told the court that Adoboli had concealed his reckless and unhedged investments by entering fictitious position in the systems of UBS.

The prosecution argued that the unhedged positions held by Adoboli at one point of time amounted to $12 billion and he was just a whisker's away from ruining the massive bank.

The risky investments by the rogue trader were revealed to be happening at a time when the iconic bank was just recovering from the financial crisis which had crippled the banking system in the United States.

Wass pointed out to the court that whatever Adoboli did was to benefit himself and enhance his own wealth. He wanted to increase his annual bonus and his status within the bank.

"Like most gamblers, he believed he had the magic touch. Like most gamblers, when he lost, he caused chaos and disaster to himself and to all of those around him," Wass told the jury.

The illegal trades by Adoboli, started by trying to mask the losses from a legitimate trade. This then changed into a habit of carrying out unauthorised trades which were hidden by fictitious positions.

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