World

The UBS trader indicted for fraud

LONDON – On Friday London police said  that the broker Kweku Adoboli, believed to have lost $ 2 billion to his employer UBS, was formally charged with fraud and false accounting.

The 31 year old man was arrested on the night of Thursday to Friday. He briefly appeared before Justice Carolyn Wagstaff. The latter ordered his remains in custody until his next hearing, on September 22.

Adoboli arrived in court wearing a white shirt and a blue jacket. There have been no plea and spoke only to confirm his identity and address.

This is the law firm Kingsley Napley representing the accused. The same office had defended Nick Leeson, the broker who brought down British bank Barings in 1995 causing him to lose some $ 1.4 billion in unauthorized transactions.

The Swiss banking giant was eager to explain how one of his employees had been able to lose $ 2 billion before the attention of managers. The lack of response monitoring systems also remains a mystery.

A statement from police said that an investigation was continuing.

Adoboli, a native of Ghana, was working at UBS in a stock brokerage team called Delta One. He and his colleagues were particularly responsible for monitoring the prices of various goods and certain securities.

Some observers of the financial world and politicians have called on UBS senior managers to take responsibility in this fiasco.

The international financial industry is trying to implement control measures more stringent since the 2008 scandal at French bank Societe Generale. Jérôme Kerviel had then lost $ 6.7 billion to his employer.

The action of UBS has regained some strength after losing feathers on Thursday.

Swiss bank UBS, the first institution in the country, said  he had discovered an estimated loss of $ 2 billion on Thursday.

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