This time, it isn’t
Last week, UBS (Switzerland’s largets bank) announced that an individual, “rogue trader” caused an estimates loss of $2 billion for the bank due to an unauthorized trade. The accused trader, Kewku Adoboli, was arrested on charges of alleged fraud (although UBS did not initially confirm the suspect). UBS expects to recover the loss by cutting 3,500 jobs within the next two years. Today, a Forbes article says the use of the phrase “rogue trader” is mere spin, used for UBS to create distance with the Adoboli’s fraudulent activities.
The following questions remain unanswered and are perhaps best left for personal judgement:
Should there be a formal inquiry into the trading matters of a private institution?
Do you think a single trader should be capable of bringing a company potentially to its knees?
Was UBS just in deciding to cut jobs for thousands of workers?
Was Adoboli secretly acting for the benefit of a hidden party?
How did Adoboli have access to even place these “unauthorized” trades?
What do you think will be the outcome of this case?