Reuters reports that a former UBS trader wept in a London dock on Tuesday after reading an email in which 'rogue trader' Kweku Adoboli, a former colleague accused of fraud, admitted to unauthorised trades that risked undermining the Swiss bank and colleagues.
John Hughes, 30, one of the most senior former traders on the bank's Exchange Traded Funds (ETF) desk in London, conceded he also made some unauthorised trades.
But he insisted he did not know that Adoboli had been creating fictitious trades. He smiled when calling his former colleague an 'excessive' gambler.
In mainly monosyllabic responses, Hughes - dressed in a grey jumper and fiddling with a hair tie for his collar-length fair hair - told the court he did not know the extent of losses Adoboli had exposed the bank to in a secret 'umbrella' account.
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In the meantime, The Financial Times reports that a junior trader working with Adoboli told the jury that he did not know the details of Adoboli's umbrella account.
Simon Taylor, a trader on the exchange traded funds desk, said that the umbrella was 'sparsely mentioned' around the office, and referred to 'discreetly here and there' on the desk. Taylor said that he believed that it was the top line of the profit and loss account for the ETF desk or 'protection' for the desk.
Adoboli, 32, was arrested on September 15, 2011 and is now on trial for fraud and false accounting that cost UBS $2.3bn. He has pleaded not guilty.
The trial continues.