Ex-Yorkshire School Pupil Charged Over £1.3 Billion Fraud
16 September 2011, 16:07
A suspected rogure trader, who went to a West Yorkshire school's been charged over a £1.3 billion fraud at banking giant UBS.
31 year old Kweku Adoboli will appear before magistrates this afternoon, accused of carrying out unauthorised deals while working for the Swiss City firm.
Adoboli, son of a former Ghanaian official for the United Nations, was arrested at his desk in a swoop by police in the early hours yesterday.
He wept in the dock as he appeared at City of London Magistrates this afternoon charged with fraud by abuse of position and false accounting.
Adoboli was listed as director of Exchange Traded Funds (ETF) and Delta-1 Trading at UBS Investment Bank in his profile on LinkedIn, the social networking site for professionals.
ETFs are an investment fund traded on stock exchanges, much like stocks, which hold assets such as stocks, commodities or bonds.
UBS, which has 6,000 staff in the UK, saw its shares slide 10% yesterday after it revealed a loss of £1.3 billion on unauthorised trading which could tip the bank into the red for the third quarter. The stock was 3% higher today.
The disclosure heightened calls for greater regulation in the banking industry.
A Swiss newspaper today reported that UBS will cut jobs at its investment banking unit, with ``massive'' savings due to be announced on November 17.
The bank has already been hit by global growth fears and last month said it would reduce its overall headcount by 3,500 as part of a move to save two billion Swiss francs (£1.5 billion) by the end of 2013.
De was taken on by Swiss banking giant UBS in 2006 as a trainee investment adviser, according to the FSA register.
He lived in a £1,000 per week apartment in Brune Street, Shoreditch, London, until he moved out four months ago.
His father John Adoboli is a former United Nations staff officer, who lives in Tema, Ghana.
UBS, which has three keys in its logo symbolising 'confidence, security and discretion', has said no client funds were affected by the trading loss.