Kweku Adoboli has been charged with fraud in connection with the suspicious trades.
(Photo: AP Photo/Matt Dunham)
Things are not looking good for 31-year-old Kweku Adoboli.
Friday, the UBS trader was charged in London with fraud by abuse of position and false accounting in connection with his involvement with unauthorized trades that caused $2 billion in losses for the financial giant.
The charges stem from unauthorized trades made as far back as 2008, raising eyebrows about both UBS risk policies and Adoboli’s ability to hide fraudulent trades for so long. Adoboli worked at UBS in London on exchange-traded funds for five years, sources say.
The trades were discovered Wednesday and Adoboli was in police custody by late Thursday night. Before his arrest, that the Ghanaian-born banker reportedly updated his Facebook status to, “I need a miracle.”
UBS, Switzerland's largest bank, said the trades could force the bank to report a loss for the entire third quarter. The news comes as UBS struggles to repair its reputation after it received government bailout money due to heavy subprime losses during the financial crisis.