The Swiss bank took a $50 billion loss on subprime mortgage securities in the midst of the financial crisis and had to face the music again this week. On Thursday came news that an unidentified “rogue trader,” or traders, in their London office has cost UBS $2 billion. So far, only one person, 31-year-old trader Kweku Adoboli, has been arrested in the matter.
After the subprime disaster four years ago, top management at UBS was called to task for having a Pollyanna-ish view of their risk exposure, the Financial Times reports. And now, as then, the rogue-trading fallout is raising questions about the bank’s risk management systems.
