UBS �1.3bn rogue trade suspect charged with fraud
A suspected rogue trader has been charged over a �1.3 billion fraud at banking giant UBS.
Kweku Adoboli, 31, will appear before magistrates this afternoon, accused of carrying out unauthorised deals while working for the Swiss City firm.
Adoboli, son of a former Ghanaian official for the United Nations, was arrested at his desk in a swoop by police in the early hours yesterday.
Adoboli, from east London, will face City of London magistrates on charges of fraud by abuse of position and false accounting.
A City of London Police statement said: “At 12.56 the CPS authorised the charging of Kwaku Adoboli, from Bethnal Green.
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“City of London Police has since charged the 31-year-old with fraud by abuse of position and false accounting.
“He remains in police custody and is due to appear at City of London Magistrates this afternoon.”
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The police inquiry is ongoing, a spokesman added.
Adoboli was listed as director of Exchange Traded Funds (ETF) and Delta-1 Trading at UBS Investment Bank in his profile on LinkedIn, the social networking site for professionals.
ETFs are an investment fund traded on stock exchanges, much like stocks, which hold assets such as stocks, commodities or bonds.
UBS, which has 6,000 staff in the UK, saw its shares slide 10 per cent yesterday after it revealed a loss of �1.3 billion on unauthorised trading which could tip the bank into the red for the third quarter. The stock was three per cent higher today.
The disclosure heightened calls for greater regulation in the banking industry.
A Swiss newspaper today reported that UBS will cut jobs at its investment banking unit, with “massive” savings due to be announced on November 17.
The bank has already been hit by global growth fears and last month said it would reduce its overall headcount by 3,500 as part of a move to save two billion Swiss francs (�1.5 billion) by the end of 2013.