A UBS trader raised the issue of a "slush account" in an electronic chat with Kweku Adoboli months before he was arrested over allegations he lost the Swiss bank $2.3 billion, a London court heard on Monday. Appearing as a witness at Adoboli's trial, Darren Bailey rejected as "ridiculous" an accusation by the accused former trader's lawyer that he ran a hidden trading book that had served as the template for Adoboli's illicit "umbrella" account.
Adoboli, 32, was arrested on September 15, 2011, and has pleaded not guilty to two charges of fraud and two of false accounting. The prosecution says he routinely exceeded his trading limits, booked fake trades into the accounts to mask his true positions, and held back some of the profits from his unauthorized deals in his umbrella. The defense says Adoboli believed he was acting for the good of the bank and was open about his methods with many of his colleagues.
In one group chat from March 17, 2011, read out in court, Adoboli and Bailey discussed that week's trading and Adoboli said that it had been "emotional".
"Have you used the slush acct (account)?" Bailey asked in response. Bailey, who still works for UBS and had denied during the first part of his evidence on Friday that he knew anything about the umbrella, said he did not have an explanation for the comment...
Read more: http://www.businessinsider.com/ubs-rogue-trade-mayve-had-slush-account-2012-10#ixzz28oe4W6z8
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