UBS, the largest bank in Switzerland, suffered an estimated $2 billion loss due to a rogue trader, who was later arrested.
The bank in a statement did not say who the trader was but acknowledged the loss. “It is possible that this could lead UBS to report a loss for the third quarter of 2011,” according to the statement. It added that “no client positions were affected.”
Kweku Adoboli, 31, who is said to have worked in UBS’ European equities sector, was arrested in London on Thursday in connection with the loss of money after a request by UBS, according to the Financial Times.
A spokesperson with Swiss banking regulator Finma told the Times that “from the scale of this case you can be sure that it’s the biggest we’ve ever seen for a Swiss bank.”
After news of the unauthorized trading was published, UBS shares fell more than 11 percent by midday.
Oswald Grübel, the head of UBS, said in an a statement obtained by the BBC that “while the news is distressing, it will not change the fundamental strength of our firm.”
