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Rogue trader causes $2bn loss at Swiss bank UBS
Business digest: Bad timing for those arguing against ring-fencing of banks’ savings and investment divisions
SHARES in the Swiss banking giant UBS plunged nearly 10 per cent on news that the bank has discovered unauthorised trading in its investment division, causing an estimated loss of $2bn. That figure could rise once the bank has completed its investigation.
It is not yet certain where the rogue trader was operating. It could be London, where the bank’s investment arm has a big presence.
UBS sought to assure its clients that their positions were unaffected.
"It is amazing that this is still possible," ZKB trading analyst Claude Zehnder said. "They obviously have a problem with risk management. Even when the amount isn't so high it is once more a loss of confidence that casts UBS in a poor light."
Referring to the Vickers Report released on Monday, BBC business editor Robert Peston said: "UBS's $2bn rogue-trader loss has not come at a great time for those who argue investment banking and retail banking should remain integrated."
Read a full report at the Daily Telegraph. ·
