UK Fines UBS $48M For Rogue Trader As Swiss Add Penalties

Law360, New York (November 26, 2012, 1:53 PM EST) -- British regulators penalized UBS AG £29.7 million ($47.6 million) on Monday for failing to stop a convicted rogue trader who cost the bank nearly $2.3 billion, while Switzerland tapped an independent investigator to impose changes and threatened higher capital requirements.

The U.K.'s Financial Services Authority levied the fine after determining that "serious weaknesses in the firm’s procedures, management systems and internal controls" had stopped the Swiss bank from thwarting unauthorized trading by Kweku M. Adoboli at UBS' London branch. Meanwhile, the Swiss Financial Market Supervisory Authority,...
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