2011 UBS Adoboli loss of over £2 billion Background Adoboli joined UBS as a graduate trainee in 2003. He then worked for delta one trading desk in 2007 which mainly traded Exchange traded fund. Due to the dissatisfaction with his annual salary and bonus of £360‚000 and the desire to become a star trader with huge bonus‚ he started his illicit trading in late 2008 which imposed a huge financial loss on UBS in Sep 2011. In the following passages‚ We would like to discuss the details of his unauthorized
Premium Risk Risk management Market risk
“Adoboli Trades Were Queried by UBS Accountant” I chose an article from the Financial Times that is based on a man by the name of Kweku Adoboli‚ a former trader based in London. Adoboli was accused of fraudulently gambling away $2.3 billion from the Swiss bank‚ UBS. According to his LinkedIn profile‚ from 2006 to 2011‚ he worked at USB’s Equity Trading division as a trade support analyst in the London office. In August 2011‚ a back office accountant at UBS started asking Adoboli questions once
Premium Trade International trade Fraud
all responsibility with the blame entirely falling on the shoulders of the low level bank employee. There were also allegations that the bank superiors knew what was going on but turned a blind eye as it was making profits. In the UBS and Kweki Adoboli scandal‚ there were similar mistakes where the Bank lacked stringent controls systems and supervision. UBS was found to have had serious weakness in its internal controls of its investment banking
Premium Barings Bank Nick Leeson Rogue trader
uk/books?id=gl83SQizlPYC&pg=PT38&dq=unauthorized+trading&hl=en&sa=X&ei=ZFmTVLmICIrxUoG_gqgL&ved=0CEQQ6AEwBw#v=onepage&q=unauthorized%20trading&f=false http://www.independent.co.uk/news/uk/crime/biggest-fraudster-in-uk-history-14bn-ubs-rogue-trader-kweku-adoboli-jailed-for-7-years-8335469.html http://www.bern http://www.isaca.org/Journal/Past-Issues/2008/Volume-4/Pages/A-Rogue-Trader-Strikes-Again-1.aspx lieb.com/securities/Unauthorized-Trading.html
Premium Bank Rogue trader
Banking Regulation Financial regulation relates to laws and rules that govern what financial institutions such as banks‚ brokers and investment companies can do. These may be set though legislation or be stipulated by the relevant regulatory agency‚ for instance the FSA in the UK . Regulation is needed to ensure consumer’s confidence in the financial sector . It does this by providing smaller retail clients with protection against potential losses and by protecting consumers against monopolistic
Premium Banking Bank Fractional-reserve banking
Derivatives in Financial Market Development Rangarajan K. Sundaram New York University (contact: rsundara@stern.nyu.edu) (contact: ) February 2013 Derivatives in Financial Market Development Rangarajan K. Sundaram Stern School of Business‚ New York University http://pages.stern.nyu.edu/ rsundara 13 September 2012 Contents Executive Summary ii 1 Introduction 2 2 The World Derivatives Market 2 2.1 Basic Derivative Instruments . . . . . . . . . . . . . . .
Premium Derivative Derivatives Futures contract