Sunday, September 18, 2011
Black man rapes bank!
UBS has raised its estimated losses due to unauthorized trading to $2.3 billion from an initial $2 billion. The bank also said that the activity by black trader Kweku Adoboli was uncovered after UBS began making inquiries. That prompted Adoboli to admit the losses, UBS said. The African trader has been charged with fraud and false accounting at a London court. The charges add that Adoboli filed false accounts between October 2008 and December 2009, and from January to September 2011. Prosecutors say that Adoboli dishonestly abused that position intending thereby to make a gain for himself, causing losses to UBS or to expose UBS to risk of loss. The UBS statement claimed that Adoboli had conducted legitimate derivative transactions, giving the bank heavy exposure to various stock market indexes. But he had then entered fictitious hedges against these positions into UBS' risk management system, while in reality he had no hedge in place and was breaching the risk limits that the bank required him to work within. Adoboli has taken on the law firm Kingsley Napley, which also represented Nick Leeson, the rogue trader who brought down Baring's bank. According to reports he is the son of a retired United Nations employee from Ghana, and he attended school and university in Britain. All three major ratings agencies - Moody's, Standard & Poor's and Fitch - are reviewing UBS' credit rating for a possible downgrade in light of the apparent failure of the bank's risk control systems.