Kweku Adoboli

  • Kweku_Adoboli_-_UB_1998662c

    News

    Kweku Adoboli Still Not Feeling That Guilty Verdict

    Kweku Adoboli, the former UBS trader who caused a $2.3 billion loss through unauthorized trading, is trying again to get permission to overturn his conviction and seven-year sentence. Lawyers for Adoboli are scheduled to ask an appeals court in London today to grant him the chance to argue that the conviction should be thrown out. […]

    / Jun 4, 2014 at 10:37 AM
  • Kweku-Adoboli

    News

    Kweku Adoboli’s Colleague Couldn’t Help But Admire The Cojones It Took To Lose UBS $2 Billion

    Not everyone would have the balls, but Adobli did and for that he deserved props.

    / Dec 21, 2012 at 10:40 AM
  • jamesgormanmorganstanleytradingfloor-260x143

    News

    James Gorman Will Say Something Nice About Wall Street When Wall Street Earns It

    If you’re looking for a cheerleader, go bark up another tree.

    “Say you want to be out ahead of it and give a lot of speeches and talk about all the good we’re doing,” Gorman said today at an industry conference in New York. “And then some trader does some stupid thing like this guy at UBS did and he’s in jail and all bets are off,” Gorman said. He was referring to Kweku Adoboli, the UBS AG trader convicted of fraud this month in the largest unauthorized trading loss in British history…Traders at New York-based Morgan Stanley had too much latitude in the past, “what I call having an outsized sandbox,” Gorman, 54, said at the conference, which was sponsored by the Securities Industry and Financial Markets Association. “Until we can be really confident we’ve got discipline around the sandboxes, I think you have to be really careful not to be holier than thou,” Gorman said. “We’re going to be in the doghouse for a while.”

    Incidentally, this would a good time to mention that Gorman’s bonus policy instituted last January– STFU or GTFO– still stands.

    / Nov 30, 2012 at 12:05 PM
  • kweku-260x146

    News

    In Retrospect, Kweku Adoboli Probably Should’ve Taken Down The Whole Bank And Evaded Arrest For A While

    In terms of speaking gigs, do you want to hear from the guy who cost UBS a couple billion or the fugitive who brought it to its knees?

    / Nov 20, 2012 at 1:05 PM
  • News

    Kweku Adoboli’s Weather Tracker Didn’t Account For Cloudy With A Chance Of Severe Losses

    John Hughes, the former senior trader on the ETF desk, said Adoboli told him in January last year about an internal account he called his umbrella. Prosecutors allege Adoboli created the account to pool profit from trades he hadn’t booked to use to cover up future losses. Hughes testified that he thought the umbrella referred […]

    / Sep 25, 2012 at 4:46 PM
  • News

    John DiBiacco Will Never Forget The Day He Told Kweku Adoboli To Cut Risk To Zero, Hours Of Silent Treatment He Received Afterward

    In Southwark Crown Court in London, the boyish-looking Mr. DiBacco was cross-examined for more than three hours by Mr. Adoboli’s lawyer, Paul Garlick, whose questions appeared to be aimed at showing the Swiss bank was fully aware of his client’s activities and that his trading was in line with the risk-taking culture in London. Mr. […]

    / Sep 24, 2012 at 2:25 PM
  • News

    UBS Encouraged Kweku Adoboli To Develop Other Interests Outside Rogue Trading, Which It Condoned, Says Lawyer/Old Boss

    Adoboli lawyer Charles Sherrard said the bank became “more aggressive in terms of its desire to make profits” in 2011, while cross-examining one of Adoboli’s former bosses at a fraud trial in London today. “The culture, practice at the bank you were working for, didn’t matter as long as you were making money,” Sherrard said […]

    / Sep 20, 2012 at 2:05 PM
  • News

    A Lot Of People Saddle Their Employer With Billions In Losses Over A Few Thousand In Personal Credit Card Debt

    UBS, the Swiss bank, was aware of problems with Kweku Adoboli’s trading five weeks before he was arrested, a court was told on Tuesday. The bank’s back office questioned €3.6bn (£2.9bn) of incorrectly booked trades as early as August 4, Southwark Crown Court heard in the trial of the former trader accused of losing his […]

    / Sep 18, 2012 at 12:55 PM
  • News

    Reader Poll: What Is The Appropriate Way To Close A Letter Informing Your Employer You’ve Lost It A Couple Billion Dollars?

    “Regards”? “Best wishes”? “Very yours truly”? “Sincerely”? “All the best”? “Love”? “Again, really sorry”? “Well I guess I’ll take off now”? “It’s been a pleasure working with you”? “TTYL”? “Keep in touch”? Kweku Adoboli, UBS’s alleged rogue trader, who does sound genuinely sorry for the “shit storm” he brought on the bank, went with “thanks.”

    Via the FT:

    “Dear Will

    It is with great stress that I write this mail. First of all the ETF [exchange traded funds] trades that you see on the ledger are not trades that I have done with a counterparty as I have previously described.

    I used the bookings as a way to suppress the PnL losses that I accrued through off book trades that I made. Those trades were previously profit making, became loss making as the market sold off aggressively through the aggressive sell-off days of July and early August. Initially, I had been short futures through June and those lost money when the first Greek confidence vote went through in mid June.

    In order to try and make the money back I flipped the trade long through the rally. Although I had a couple of opportunities to unwind the long trade for negligible loss, I did not move quickly enough for the market weakness on the back of the first back macro data and then an escalation eurozone crisis cost me the losses you will see when the ETF bookings are cancelled. The aim had been to try and make the money back before the September expiry date came through but I clearly failed.

    These are still live trades on the book that will need to be unwound. Namely a short position in DAX futures [which had been rolled to December expiry] and a short position in S&P500 futures that are due to expire on Friday.

    I have now left the office for the sake of discretion. I will need to come back in to discuss the positions and explain face to face, but for reasons that are obvious, I did not think it wise to stay on the desk this afternoon.

    I will expect that questions will be asked as to why nobody was aware of these trades. The reality is that I have maintained that these were EFP [exchange for physical] trades to the member of my team, BUC [the accounts department], trade support and John Di Bacco.

    I take responsibility for my actions and the shit storm that will now ensue. I am deeply sorry to have left this mess for everyone and to have put my bank and my colleagues at risk.
    Thanks, Kweku.”

    Transcript Of UBS Trader’s ‘Bombshell Email’ [FT]

    / Sep 14, 2012 at 4:13 PM
  • News

    ‘Counterparty’ is such a bandied about term nowadays. So I just, you know, I kinda just don’t use ‘em.

    According to [Crown Prosecution Service’s Sasha] Wass, William Steward, an accountant in the UBS back office, “must have felt that he had been hit by a steam roller” after he received an email from Adoboli on Sept. 14 last year revealing his actions. She said Steward had three conversations that morning with Mr. Adoboli about […]

    / Sep 14, 2012 at 1:33 PM
  • News

    Kweku Adoboli Is A Free Man!

    Kind of! Though he doesn’t go to trial until September, the UBS’s rogue trader was granted bail after ten months in jail and a February denial to go home. Naturally, he’s pretty pleased about the turn of events (which allow for sleepovers).

    Mr. Adoboli, 32, has to stick to a curfew but can stay at a friend’s house wearing an electronic tag as part of the bail agreement. Tim Harris, Mr. Adoboli’s lawyer at Bark & Company, said his client was “delighted” and would like to thank family and friends for their support in achieving his release. Mr. Adoboli is expected to be released from London’s Wandsworth prison as early as Monday, Mr. Harris said. Mr. Adoboli had pleaded not guilty to counts of false accounting and fraud. He was arrested in September after UBS alerted the police. The bank claimed that Mr. Adoboli had masked the billion dollar losses from internal controls with fictitious trades. Mr. Adoboli has remained in custody ever since his arrest. The trading scandal rocked the Swiss bank and led to the resignation of its chief executive, Oswald J. Grübel. Denying Mr. Adoboli bail in February, the judge said that the allegations against the former trader were “serious” and “backed up with cogent evidence.”

    Former UBS Trader Is Granted Bail [Dealbook]

    / Jun 8, 2012 at 6:14 PM
  • News

    UBS Not Sweating The Small Stuff

    UBS is sitting on losses that could be as high as $350 million stemming from its investment in the Facebook initial public offering, and is preparing legal action against Nasdaq as a result, people familar with the matter told CNBC … These people said UBS wanted 1 million shares, but when it did not receive […]

    / Jun 8, 2012 at 2:42 PM
  • Banks

    Um, This Isn’t So Good

    Poor Sergio Ermotti was having a pretty good day today, with UBS’s stock up and clients more or less happy with the new business plan of “make 180% of your income on DVA and spend 140% of it on comp.” And then this went and happened: UBS agreed to pay $12 million on Tuesday to […]

    / Oct 25, 2011 at 3:34 PM
  • Banks

    UBS Clients Don’t Get Out Of Bed For Less Than $50 Billion In Losses

    So far, the trading scandal doesn’t appear to have significantly hurt the confidence of UBS’s wealthy clients, who had pulled hundreds of millions of francs from the bank in 2008 and 2009 after Swiss authorities had to bail out UBS following about $50 billion in securities write-downs. A bruising tax evasion battle with the U.S. […]

    / Oct 25, 2011 at 12:17 PM
  • News

    UBS Will Have A Serious Talk With Everyone Who Let The Adoboli Incident Go Down When They Get Home

    The company said it plans to take “appropriate disciplinary action” against other individuals in the Equities business” as a result of the trading incident. UBS said it also expects to take disciplinary action “against responsible staff in other functions.” [WSJ]

    / Oct 5, 2011 at 3:13 PM
  • Banks

    Two UBS Executives Resign Over…You Know

    “UBS said Francois Gouws and Yassine Bouhara resigned as co-heads of Global Equities following the recent unauthorized trading incident. Mike Stewart will become sole global head of Equities, it said.” [Bloomberg]

    / Oct 5, 2011 at 1:13 PM
  • Banks

    Who Wants To Be CEO Of UBS?

    As you may have heard, over the weekend, UBS CEO Oswald Gruebel informed the board that as much fun as this job’s been, he’d like to quit while still ahead. Sergio Ermotti, head of European business, has been named interim CEO and while a candidate for the gig before the whole Kweku Adoboli incident, the […]

    / Sep 26, 2011 at 10:14 AM
  • Banks

    UBS’S CEO Is Gonna Take Off Now

    Forever.

    / Sep 24, 2011 at 12:30 PM
  • Banks

    Kweku Adoboli Feels Pretty Bad About The Whole…Y’Know

    UBS trader Kweku Adoboli, accused over the Swiss banking giant’s $2.3 billion losses from unauthorized trades, was “sorry beyond words,” his attorney said Thursday. [NYP]

    / Sep 22, 2011 at 11:16 AM
  • Banks

    UBS Suggests Employees Savor This Weekend’s Pebble Beach Outing, As Next Year’s Event Will Be Held At The Hartford Pitch ‘N Putt

    Less than a week ago, UBS announced that profits for the third quarter may not be what they were hoping for, as a result of a trader named Kweku Adoboli losing the bank $2.3 billion dollars. Tensions have been running a bit high since then, on account of many employees wondering if a) they’ll be […]

    / Sep 21, 2011 at 12:52 PM
  • Banks

    UBS Investment Bank Chief Urges Employees To Remember Firm’s Legitimate Months

    Carsten Kengeter, head of UBS’ investment banking division, sent a rallying message to staff on Sunday night urging them to “move forward forcefully and decisively” following the disclosure of $2.3bn of losses from unauthorised trading…Mr Kengeter e-mailed staff saying the incident should not “undermine our hard won achievements since the crisis.” [FT, related]

    / Sep 19, 2011 at 12:24 PM
  • Banks

    Bonus/Layoffs Watch ’11: UBS Failing To See The Considerable Upside To $2.3 Billion Loss, Says Analyst

    As you may have heard, UBS announced last week that it’d lost about $2 billion, a ballpark figure that the bank said today is actually closer to $2.3B. Separately, you may have also heard that the past several years? Have not been the best of times for the Union Bank of Switzerland, which has been […]

    / Sep 19, 2011 at 11:53 AM
  • Analysts, News

    Dick Bové Suggests You Connect The Dots On This UBS “Rogue Trade”

    From: Richard Bove Subject: Regulator role in UBS loss Did regulators play a role in the UBS loss? Richard X. Bove Let’s hear him out.

    / Sep 16, 2011 at 5:21 PM
  • Banks, News

    Was Yesterday The Worst Day For UBS In The History Of A Billion Universes?

    Nah, it was much worse. Some people have questioned the “proclivity of UBS for getting involved in fiascos in which the bank believed it was taking relatively little risk but ended up losing large amounts of money” and a risk management policy that (really!) consisted of “still don’t lose any money, but do more.” You […]

    / Sep 16, 2011 at 11:01 AM
  • Banks

    Kweku Katastrophe Prompts ‘If You See Something, Say Something’ Reminder From JPMorgan

    Don’t let one bad apple ruin it for the rest of us- be vigilant, my beautiful babies.

    / Sep 16, 2011 at 10:51 AM
  • bonuses

    Bonus Watch ’11: UBS Might Not Be Paying Out Bonuses In The Traditional Sense Of The Word

    Will you be thanked for your hard, non-rogue-esque work over the year? Probably. Will you receive any actual money? Probably not.

    / Sep 16, 2011 at 10:27 AM
  • Banks, FaceBook

    Facebook ‘Friends’ Find Unimaginably Cruel Way To Kick Kweku Adoboli When He’s Down

    As the users of Mark Zuckerberg’s poking machine among us can attest, there are many things you can expect from your Facebook friends. You can expect that they’ll keep you abreast of every insignificant moment of their entire lives. You can expect that they’ll post public affirmations about being “stronger than this” following a break-up […]

    / Sep 16, 2011 at 9:47 AM

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