Swiss bank UBS has increased the loss it expects from its rogue trading incident to $2.3 billion from the $2 billion figure earlier provided.
The bank said Sunday it has “now covered the risk resulting from the unauthorized trading” and its equities business “is again operating normally within its previously defined risk limits.”
UBS says the loss resulted from unauthorized speculative trading in various stock markets over the last three months.
It says the trader responsible hid the magnitude of the risk to which the bank was exposed by creating fictious future orders.
The trader, 31-year-old Kweku Adoboli, was arrested Thursday and charged Friday with acts of fraud and false accounting dating back to 2008.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
GENEVA (AP) — Oswald Gruebel, the chief executive of Swiss banking giant UBS, says he feels responsible — but not guilty — for the $2 billion loss allegedly incurred by a rogue trader that plunged the bank back into scandal just as it was rebuilding its tattered reputation.
Speaking for the first time since UBS revealed the loss Thursday, Gruebel also told the Swiss weekly Der Sonntag that he isn’t thinking about resigning because of the latest financial fiasco to befall the Zurich-based bank.
Some Swiss politicians and commentators have called for Gruebel’s head to roll over the loss, which is likely to put UBS’s third-quarter results deep in the red. Such a move signal a defeat for the gravel-voiced German, who was brought in more than two years ago to revive the bank’s fortunes after a series of missteps that included vast losses in the U.S. subprime mortgage market and an embarrassing U.S. tax evasion case. – MORE