The London-based investment banking business
of troubled Swiss banking giant UBS confirmed it lost $2.3bn in its
recent unauthorised trading scandal, $300m more than its original
estimate.
Last week, Kweku Adoboli, a UBS trader within
its global synthetic equity business, was arrested and charged by
UK authorities with fraud by abuse of position.
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Adoboli allegedly conducted a series of
unauthorised transactions over a three-month period that cost the
bank $2.3bn, UBS said on 18 September.
The incident has highlighted UBS’ weak risk
exposure assessment processes and prompted the bank to launch an
internal investigation into this matter.
There are suggestions the scandal could prompt
a massive internal restructure at the Swiss bank.
The investigation will be conducted by a
special committee, which is chaired by senior independent director
David Sidwell, who in turn will report to bank’s board of
directors.
UBS re-iterated that its clients within the
wealth management business were not affected.
