Adoboli, 32, used to work as a senior trader on the Exchange Traded Funds (ETFs) desk at UBS's London offices. He was arrested on September 15, 2011 and is now on trial accused of fraud and false accounting, charges he denies.
The prosecution presented as evidence to the jury an email sent by UBS's internal communications team to all investment bank staff on January 25, 2008, reacting to SocGen's announcements about the Kerviel affair.
In the meantime, Bloomberg reports that UBS’s internal compliance department said in an e-mail following Kerviel’s loss: 'Any suspected fraudulent activity or breach of trust should be escalated to your local compliance officer. UBS does not tolerate violations of its code'.
The UBS e-mail, sent on January 25th, 2008, was titled Global Compliance Alert: Rogue Trader Costs Societe Generale $7.1 Billion. It compared Kerviel to Nick Leeson, the former British derivatives trader who caused the collapse of Barings Plc in 1995.
That e-mail, from the internal communications department at UBS’s investment bank, warned staff to be on the alert for 'unusually large trading volumes' and other warning signs such as traders exceeding risk limits, transactions 'that don’t seem to serve a purpose', a pattern of late or canceled trades, or unusual amounts of profit or loss.
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