Charges against UBS rogue trader Kweku Adoboli. were expanded by London authorities yesterday.
LONDON — Kweku M. Adoboli, the UBS trader accused of costing the big Swiss bank $2.3 billion in losses, will remain in police custody until a hearing next month after his lawyer said in court on Thursday that Mr. Adoboli would not seek bail.
The British authorities, meanwhile, amended their charges against Mr. Adoboli, adding a second fraud charge for activities from October 2008 through 2010. Mr. Adoboli also faces two charges for false accounting. At the hearing, the prosecutor, David Levy, said Mr. Adoboli had “acted improperly” and that “he carried out reckless and inappropriate trades which he hid.”
Mr. Adoboli’s lawyer, Patrick Gibbs, did not enter a plea at the hearing, but said Mr. Adoboli was “sorry beyond words for what had happened.”
He added, “He stands now appalled at the scale of the consequences of his disastrous miscalculations.”
The question for UBS is how much this ends up hurting them. The board which is meeting in Singapore will discuss whether to demand the resignations of Chief Executive Oswald Grubel, as well as Carsten Kengeter chief of its investment bank, according to a person familiar with the situation. The results of UBS's intital investiation could influence the board's decision, this person said.
UBS which came back from the brink after 34.3 billion Swiss francs ($38.1 billion) in 2008. We'll see how much this new crisis of confidence costs it.
For Mr. Adoboli, it doesn't look so great. As I mentioned in a previous post about him, I must say that on a purely human level he seems like a pretty nice guy. He is also black, actually from Africa which as I noted in my last piece (I myself am of mixed race and partly black) sets him up as a kind of trailblazer-can't resist going there...
It is an accomplishment to have lost $2.3 billion dollars in unauthorized trades ,as I argue in my first piece "The Greatness of Losing on a Grand Scale"
What can I tell you, I find him hard to dislike. Besides There but for the Grace of God go I! You and I have never done this but we never had the opportunity to. That doesn't necessarily make us morally superior.