Monday, November 26, 2012

UBS Stung by Adoboli Case




Swiss and U.K. financial regulators have cracked down on UBS AG after a former trader at its investment bank in London lost $2.3 billion, the WSJ reports.  Britain's Financial Services Authority Monday said it fined the Zurich-based bank £29.7 million pounds ($47.6 million), one of the biggest fines it has ever imposed.

"Failures of this type in firms of the size and standing of UBS not only damage the firms concerned but also wider confidence in the integrity of the markets and the financial system," said Tracey McDermott, the FSA's director of financial crime.
Switzerland's equivalent regulator Finma, which doesn't have the power to impose fines, said it would consider "whether UBS must raise capital backing for its operational risks…..

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