UBS $2.3bn Unauthorized Trading Scandal Trial Set To Start, Firm Sued In U.S.

Bloomberg reports that since being released on bail three months ago, Adoboli, 32, has worked on his defense at the office of his law firm, Bark & Co. He is facing an eight-week trial in criminal court to decide whether he caused the largest unauthorized trading loss in British history at UBS’s investment bank a year ago.

In the U.K., fraud charges carry a maximum sentence of 10 years in jail, and seven years for false accounting. Adoboli is facing two counts of each.

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Ex-UBS Trader’s $2.3 Billion Trading-Loss Trial to Begin

In the meantime, Bloomberg also reports that UBS is being sued by the U.S. regulator of credit unions for improper sales of $1.1bn in faulty securities that contributed to two firm failures, the National Credit Union Administration said.

The lawsuit accuses UBS Securities of selling residential mortgage-backed securities that were 'all but certain to become delinquent or default' soon after the sale, according to NCUA’s complaint dated Thursday. Two wholesale credit unions - U.S. Central Federal Credit Union and Western Corporate Federal Credit Union -failed after buying the products, the agency said.

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UBS Sued by U.S. Regulator for $1.1 Billion in Faulty MBS Sales

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