Keeping Rogue Traders At Bay

Law360, New York (October 4, 2011, 4:27 PM EDT) -- On Sept. 16, 2011, Kweku Adoboli, a native of Ghana and UBS AG employee, was charged with fraud arising out of unauthorized trading. UBS estimates that Adoboli’s rogue trading continued for three years and caused it to incur losses of $2.3 billion.

Banks, lawyers and other industry specialists are all posing the same question: Given UBS’ sophisticated risk procedures, how did Adoboli’s rogue trading go undetected for so long? And what lessons can the industry learn?

A Little Background

Adoboli joined UBS’ London investment banking division...
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