The billion dollar loss signals that the banking industry may require greater regulation, as loose governance resulting in unscrupulous banking practices is now widely thought to be the cause of the world’s economic downturn. John Gapper of The Financial Times contends that UBS has shown that it has failed to overhaul its “accident-prone nature.” Given the bank’s recent history, he writes, “it is fair to ask if Kweku Adoboli is a rogue trader or his employer is a rogue bank.” more
“[N]o client positions were affected,” the USB said in an official statement. However shareholders may not be so lucky. AP notes that the unauthorized trades could erase nearly all of the 2 billion Swiss francs ($2.28 billion) UBS last month announced that it hoped to save by doing away with 3,500 jobs over two years.