Bloomberg reports that Adoboli, 32, 'lost control' over his trading decisions in July of last year after pressure from senior managers prompted him to change his strategy and bet the markets would improve, he said Tuesday during his third day on the stand. He and his girlfriend broke up for two weeks, he said, with stress mounting and his losses accelerating. After they reunited, she told him he must ask for help.
'In the end, she was the strength, she was the person who said to me, ‘Look Kwek, if you can’t fix this, you need to tell someone'', Adoboli said. 'She said ‘Look, this is going to kill you, you can’t keep fighting this battle, you’re clearly not winning'.
Adoboli, on trial in London accused of fraud and false accounting, was arrested last year for allegedly hiding the risk of his trades by booking fake hedges. He said he was trying to recoup the losses on his own while waiting for the senior trader on the desk, John Hughes, to return from vacation.
When they realized the extent of the losses on August 11th, Adoboli said Hughes advised him to fly to Ghana, where he is from, and send an e-mail from there explaining the trades to managers at the Swiss bank.
In the meantime, Reuters reports that ending an emotional three-day defence against charges of fraud and false accounting, a tearful Adoboli said he was 'devastated' and 'sorry beyond words' about the losses.
But he attacked the culture of investment banks, arguing that compliance rules were 'aspirational' and that traders had to bend rules to achieve the goals set by senior management.
'I'm devastated to have put UBS in that position. I'm devastated that my friends lost their jobs. I'm devastated that in order to tell the world who I am I have to tell things about my organisation that they wouldn't want me to', Adoboli told the court.
'But in the end the reason I'm most sad is because the losses weren't the result of dishonesty or fraudulent behaviour, they were the result of a group of traders asked to do too much with too little resources'.