Swiss, British regulators launch probe into UBS losses
Swiss and British financial regulators said Friday they were launching an independent probe into how Swiss banking giant UBS could have incurred $2 billion in losses through rogue trading.
"The Swiss Financial Market Supervisory Authority (FINMA) and the UK Financial Services Authority (FSA) are launching a comprehensive independent investigation into the events surrounding the trading losses incurred by UBS AG in its London operations," said FINMA in a statement.
In London, the FSA confirmed the probe, which will be conducted by a third party firm independent of UBS and will look at the details of the unauthorized trading and the control measures that allowed the fraud to remain hidden.
It will also assess the strength of the bank's controls to prevent fraudulent trading in its investment bank, said FINMA.
The regulator added that it could not give a timeline on the duration of the probe.
A British court on Friday remanded equities trader Kweku Adoboli in custody over an alleged $2 billion fraud at UBS, with one of the three charges against him dating back to 2008.
Adoboli, the son of a retired United Nations official from Ghana, was arrested in London in the early hours of Thursday.
© 2011 AFP