Article: UBS rogue trader’s $2.3-billion ‘naked gamble’ nearly destroyed bank, court told

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UBS rogue trader’s $2.3-billion ‘naked gamble’ nearly destroyed bank, court told

Estelle Shirbon, Michael Holden

Reuters, 14 September 2012

Former UBS trader Kweku Adoboli arrived at Southwark Crown Court in London Sept. 14, 2012. Adoboli, was arrested a year ago when a loss of $2.3-billion came to light, and was charged with fraud and false accounting.

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Article: UBS will pay $12M over naked shorts

Article - Media

UBS will pay $12M over naked shorts

dcubberley

InvestmentNews, 27 October 2011

UBS AG, Switzerland’s biggest bank, will pay $12 million to resolve Financial Industry Regulatory Authority claims that a brokerage unit allowed millions of short-sale orders to be placed without reasonable grounds to believe that the securities could be delivered.

The supervisory system for locating and marking orders at UBS Securities LLC was “significantly flawed” and contributed to violations across its equities-trading business, Washington- based Finra said in a statement today. The company’s framework wasn’t designed for regulatory compliance until at least 2009, the industry-funded brokerage watchdog said.

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