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

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

To: Investment Bank, North America
Sent: Thursday 9/15/2011 2:42PM
Subject: Unauthorized Trading

Today UBS announced that it discovered an estimated $2 billion loss due to unauthorized trading by a trader it its Investment Bank, which may result in a net loss for the bank's third quarter. This incident illustrates the monetary and reputational damage that a single individual's misconduct can potentially cause a global financial institution.

All of us have a duty to adhere to the highest standards of integrity and fair dealing, and to comply with the spirit as well as the letter of the law, regulations and policies that govern our business activities. JPMorgan depends on you not only to observe these standards in your own business dealings but to be vigilant to the potential misconduct of fellow colleagues, clients, or our service providers. Our Code of Conduct requires you to promptly escalate any known or suspected violation, either to your supervisor, Legal and Compliance or anonymously to the Code Reporting Hotline or the Global Security and Investigation Department.

Questions? Please contact your Compliance Officer.


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]