Rogue Trader: UBS Banker Kweku Adoboli 'Lost $2 Billion'

UBS Banker Kweku Adoboli Accused of $2 Billion in Unauthorized Trades

Scotland Yard has arrested 31-year-old banker Kweku Adoboli after evidence emerged that he had amassed £1.3 billion ($2 billion) in losses due to rogue trades. News of the arrest sent UBS stock plunging 8%.

Photos

a fiver

see larger image

uploaded by Jordan Yerman

Rogue trades don't affect individual customers of a bank like UBS, though the institution's overall profits are impacted. Indeed, UBS could post a third-quarter loss due to these unauthorized trades alone.

Many are familiar with the term "rogue trader" due to the movie starring Ewan McGregor, which told the story of Nick Leeson. Leeson's rogue trades broke Barings Bank, and was imprisoned for three years.

Three years for $1.3 billion in losses is not bad, though: prisons are full of people who spend a lot longer inside for stealing a lot less.

• WSJ: Famous Rogue Traders