Bloomberg reports that Kweku Adoboli, the former UBS trader on trial for fraud and false accounting, missed a chance to erase billions of dollars in unauthorized trading losses, according to one of his managers at the bank.
Adoboli, who eventually caused UBS to lose $2.3bn,'had a brief window to take the position to zero and he didn’t, and then the market started to go down', Ron Greenidge said at a London court Wednesday. Greenidge, who oversaw the exchange-traded-funds desk until April of last year, was one of the first people to meet with Adoboli on the day he confessed in an e-mail to hiding trades.
Adoboli, 32, admitted he risked $5bn on Standard & Poor’s 500 futures and a further $3.75bn in the German futures market, said Greenidge, who no longer works at UBS. Adoboli has denied the charges and the former trader’s lawyers have said he is looking forward to providing the jury with his own account of what happened.
'I could not believe someone I worked with for that length of time would do something like this', said Greenidge
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In the meantime, Reuters reports that the culture at UBS when Adoboli was working there was that risk limits could be exceeded as long as the bank was making money, Adoboli's defence lawyer told a London court on Thursday as he was cross-examining Greenidge.
Greenidge responded: 'That's not true'.
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image: © Sam Howzit