UBS Trader Says He Used Adoboli’s Umbrella Account

John Hughes, a former UBS trader, testified he made the same type of unauthorized trades as his co-worker Kweku Adoboli, who is being prosecuted for fraud.

Bloomberg reports that Hughes said during his fourth day of testimony at Adoboli’s fraud and false accounting trial in London Monday that he made trades that benefited the fund Adoboli had dubbed his 'umbrella' - the first time another worker admitted using that account.

Charles Sherrard, Adoboli’s lawyer, presented evidence of at least five transactions on the umbrella account made by Hughes while Adoboli was on vacation in Greece in June 2011, and that accounting firm KPMG LLP had evidence of other such trades. Adoboli called it the umbrella because it could be tapped on 'rainy days' to cover trading losses, prosecutors have said.

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UBS Co-Worker Says He Used Adoboli’s Umbrella Account

Finally, Reuters reports that UBS on Monday lost a bid to suspend a federal regulator's lawsuit accusing it of misleading Fannie Mae and Freddie Mac into buying billions of dollars of risky mortgage debt.

U.S. District Judge Denise Cote ruled that the FHFA could continue its case accusing UBS of breaking federal securities laws by misleading Fannie Mae and Freddie Mac into buying $6.4bn of subprime and other residential mortgage-backed securities.

Hit the link below to access the complete Reuters article:

UBS is denied request to suspend $6.4 bln federal lawsuit