(Image Source: MSNBC)


BY NOE GANDILLOT
 
ANCHOR CHRISTIAN BRYANT

UBS rogue-trader Kweku Adoboli will remain in custody for at least one more month. A London judge ruled He should be transferred to a criminal court. Euronews has the details.

“UBS trader Kweku Adoboli, who is accused of unauthorised trading which the Swiss bank says cost it 1.7 billion euros has appeared in court again.
(...) The 31-year-old was told that he will remain in custody, pending his trial. His next appearance will be at Southwark Crown Court on 22 November when he can enter a plea of guilty or not guilty.”


Prosecutors amended two of the four charges against Adoboli to indicate that he allegedly falsified records. BusinessWeek reports:

“The charges ... cover ‘a large number of transactions,’ prosecutor David Williams said at the hearing today.  ‘(Mr. Adoboli) exposed the bank to risk of large losses.’”

And the risks extended way beyond that. Former UBS CEO Oswald Grubel, who resigned last month, said the trading incident had ‘worldwide repercussions.’
And The New York Times notes -- due to bad oversight, some big wigs lost their jobs over the rogue trading.

“UBS has been dealing with the fallout from the trading scandal. It has prompted the resignation of the chief executive, ... and the departure of the co-heads of equities. Another eight people in that division were suspended in connection with the case.”

Bloomberg reports -- UBS also took a huge financial hit.

“There’s a lot of pressure on UBS, if you look at the share there, down about 30% this year. (...) there’s a lot of pressure on UBS to prove that it’s reducing its risks and that means scaling back the investment banking operations”.

But is one isolated trader capable of jeopardizing a financial giant like UBS - without anyone noticing? Swiss paper Bilan suggests more were involved. Sources close to the bank told the magazine:

"It appears that Adoboli did not act on his own (...) and we may even be surprised to see his responsibility mitigated. (...) The head of risk management in the investment bank unit was possibly aware. Likewise, the chief risk officer of the group was also likely to be sullied by the affair."

In the next few days, the bank’s own internal investigation and a separate investigation by KPMG will be completed. According to Bilan, their conclusions could bring more trouble for UBS.

 
Transcript by Newsy.

Business News: UBS Rogue Trader faces Higher Court

UBS in Turmoil as Rogue Trader Goes to Higher Court

October 21, 2011
(2:20)
Rogue-trader Kweku Adoboli was transferred to a criminal court. UBS deals with the scandal's fallout.
   
TRANSCRIPT

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