UBS facing huge fine for rogue trading
UBS will have to pay one of the largest fines yet imposed by the UK’s financial regulator for management failures that led to the Swiss bank’s $2.3 billion (€1.78 billion) rogue trading loss, according to people familiar with the negotiations.
The Financial Services Authority and UBS are finalising details on a settlement penalty that will probably range between £20 million and £50 million.
The two regulators announced a joint inquiry in September 2011, shortly after UBS announced that Kweku Adoboli had lost more than $2 billion on unauthorised trades. Adoboli was convicted of fraud this week and jailed for seven years by a London court.
– Copyright The Financial Times Limited 2012