Has anyone seen my $2bn?
UBS seems to have lost some money down the back of the sofa!!!
UBS loses $2bn UBS join ranks of rogue traders today |
Ouch.........
dl |
Chief Executive Oswald Gruebel said "We have been unable to contact the member of staff in question as he is fishing in Alaska and is unreachable"
:Suspiciou |
:)
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Originally Posted by mamoon2
(Post 10237155)
Chief Executive Oswald Gruebel said "We have been unable to contact the member of staff in question as he is swimming with the fishes in Alaska and is unreachable"
:Suspiciou EFA :thumb: |
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i bet hes been eaten by a polar bear ;) ;)
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You lot do realise that my quote is completely made up as a joke to Trout who was fishing in Alaska recently, insinuating he has stole the money.
The guy is not actually missing |
darn, i've been had lol
alright for some init, o speaking of which. did you see the drag race that the 911 gt 3 being eaten by the gtr? hehe |
Astonishing amount to lose. Or more accurately, an astonishing amount for risk control at UBS to miss.
Apparently he's an ETF trader for those who know what that is, and that makes such a loss even more incredible. He was arrested early this morning on charges of fraud. Bet he's had a few sleepless nights... |
I thought UBS made memory sticks for dyslexic people :confused:
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Some one(s) must have taken the other side of this guys bet(s)?
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Yep, indeed. Zero sum game but there's a book profit of $2bn somewhere else. Nice day at the office.
In human terms it's not great, although banker-sympathy is probably lower than whale$hit at the bottom of the ocean still. UBS recently fired 3,500 people to save roughly the same amount of money, so in theory this guy could have cost a further 3,500 people their jobs. |
Time to double down. :)
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There is a rumour it was linked to a Swissie position which was badly hit by the recent Swiss Government intervention and the massive 8% swing in Forex.
Maybe he was trying to chase after his loss. |
But even with an 8% devaluation, a $2bn loss would require a massive initial position, unless it was leveraged to crazy levels. It can't have been an ETF trade, possibly the reason he was arrested for fraud. I'll be interested to hear the explanation when it's released.
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I agree - crazy
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Kweku Adoboli
Director ETF and Delta1 Trading at UBS Investment Bank |
Originally Posted by TelBoy
(Post 10237359)
Astonishing amount to lose. Or more accurately, an astonishing amount for risk control at UBS to miss.
Apparently he's an ETF trader for those who know what that is, and that makes such a loss even more incredible. He was arrested early this morning on charges of fraud. Bet he's had a few sleepless nights... |
His Linked In profile is outdated.
I have heard he was global head of synthetic equities so it is very possible he could have run up this position. |
What's the actual crime here then? He's bet large with the banks money and lost but that was his job anyway?
Piss poor money management skills but that's not a crime per se? :D |
Unbelievable. As terrible a thing to do as it is, part of me can't help feeling a little sympathy for him.
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Originally Posted by GlesgaKiss
(Post 10237689)
Unbelievable. As terrible a thing to do as it is, part of me can't help feeling a little sympathy for him.
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I'd imagine it would be quite difficult to hide positions that size from the rest of the company in this day and age, but who knows.
This whole 'fraud' thing sounds a bit suspicious. I could be wrong without knowing the facts, but I'd tend to agree with you... it sounds like he's just lost a lot of dosh! |
If he concealed the trades or went beyond his level of control then it is fraud...
...just like Nick Leeson and Casaviel. You have to think that if the bank controls allowed it then they are culpable. |
You may ask what a Bank is doing gambling like this anyway.
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TdW - idiot :)
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Originally Posted by Trout
(Post 10237764)
TdW - idiot :)
Obviously this guy risked more money than he was supposed to, but you still have a banking institution engaging in trading...it adds another layer of risk to institutions which supposedly are so important to our civilisation that we cannot do without them, being as they are 'too big/important to fail'. |
I can see both sides of this one. On the one hand, this guy will make a convenient scapegoat for the possible imprudence of those above. Then again, if he's overridden his setup somehow to do this, he should take the majority of the blame. Defending it would be a bit like saying it's your fault if one of your employees wrecks your premises.
At some level they could probably have probably done more to prevent it though. They always could, and this will be another wake up call to put better safeguards in place. If he's overridden the system then he's basically removed money from his employers by force to play with. |
What a James Hunt. The Swiss National Bank could close down the IB for this and 10,000's would lose their jobs and ex-employees watch their cv's go further down the toilet*. He should kill himself if he feels so badly. IMHO I'm all heart me!
*1989-1999 London & Zurich for my sins |
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