UBS Trader Said To Discuss 'Slush Account' In Electronic Chat

A colleague of Kweku Adoboli at UBS discussed a 'slush account' with him in online chats after the former trader told him he was holding profits off the bank’s trading books.

Bloomberg reports that Darren Bailey, a trader in the cash-equities group who has worked at the bank for 13 years, testified Monday at a London criminal court that he didn’t remember the exchanges and was 'genuinely shocked' by message transcripts that showed they discussed the so-called umbrella account. Bailey said last week he couldn’t recall discussing a slush fund with Adoboli.

In the meantime, Reuters reports that a UBS analyst who queried deals booked by accused fraudster Kweku Adoboli thought his trading desk was 'very messy' but did not suspect anything illegal, a London court also heard on Monday.

Henry Chu, who repeatedly chased Adoboli in the summer of 2011 over problems with his bookings, said the first he knew of any fake trades was when Adoboli's arrest was on the news in September 2011.

'I had no clue at all. I didn't know anything about the fake trades until everything was on the news', he said.

Adoboli is on trial at Southwark Crown Court accused of fraud and false accounting that cost UBS $2.3bn. He has pleaded not guilty.

The trial continues.

Adoboli Talked Slush Fund at UBS in Chats, Records Show

Accused UBS "rogue trader" was chased over problem trades