UBS Rogue Trader

I plan to update this page occasionally, as the story develops. Last update 26th Sep 15:00 GMT, latest posts at the bottom of the page. The views on the incident seem to get nastier by the time. 

This is just crisis porn and more suitable for late-night viewing. Fortunes have been made and mostly lost, so this is a good primer on what to expect (FT writing about your Facebook status updates) when the middle office finds those hidden trade confirmations. If you have been lucky or only somewhat unlucky in the markets, this can be thought as a reminder that things could be much, much worse for you. Good luck, follow me on Twitter or email me. 

Dedicated section

(REG) In-depth – USB trading scandal – FT

UBS ROGUE TRADER

Linkedin profiles of the perp and his boss. Delta One, just like in SocGen

The curse of Delta one strikes UBS – alphaville / FT

Internal memo to employees

UBS rogue trader – alphaville / FT

Indirect cost increases: more risk management, investor risk aversion, bad reputation

UBS rogue trade – the wider costs – alphaville / FT

FSA broker profile, Twitter account, also points out that similar trouble in quant funds can be expected.

SocGen Redux - ETF Trader At Center Of UBS Rogue Trade – Zero Hedge

UBS Reports $2 Billion Loss by Rogue Trader – DealBook / NYT

Mandatory look at previous famous cases.

Traders Gone Rogue: A Greatest-Hits Album – DealBook / NYT

Points out that UBS’s risk management has been criticized in the past, too.

Why Didn’t UBS’ Risk Systems Throw Up an Alert? – The Source / WSJ

The timing just after the Vickers report puts an interesting twist to the debates on banking reform: “As for the bankers, they remind me of the post-1815 Bourbon monarchs who had "learned nothing and forgotten nothing".”

** What's $2 billion between friends? – Buttonwood’s notebook / The Economist

Is it even extraordinary? (Short piece)

** Too big to care – This is the Green Room

Points out that the loser rogues are tolerated because of winner rogues

** What Do You Call A ‘Rogue’ Trader Who Makes $2 Billion? A Managing Director – MarketBeat / WSJ

Profile of the “man of the hour”

Meet Kweku Adoboli – efinancialnews.com

Speculates that the position was in EURCHF, and could have been a long volatility play.

UBS and the Big Trade? – The Trader

UBS Rogue Trader Had Been "Reduced To Watching Fox News For Guidance" – Zero Hedge

A rogue trader at UBS or a rogue bank? – Business blog / FT

You can probably guess Matt Taibbi’s view from the headline 

** The $2 Billion UBS Incident: 'Rogue Trader' My Ass – Taibblog / Rolling Stone

Neighbors tell he is a really nice guy, went to good school, blah blah.

A UBS Trader, From Typical to Rogue – DealBook / NYT

16th Sep updates

Moody’s May Downgrade UBS After Trading Loss – DealBook / NYT

Delta One Desks Are Big Moneymakers – DealBook / NYT

Arrest of UBS Trader Rattles Banks in Europe – DealBook / NYT

Also suggests CHF as the culprit

Losing $2B Without Anyone Knowing About It Is Much Harder Than You Think – Kid Dynamite’s World

** UBS did not notice Adoboli's £1.3bn loss – BBC

City rogue trader Kweku Adoboli arrested over $2bn UBS loss – The Telegraph

“Recent volatility in financial markets may have helped bring the losses allegedly racked up by a rogue trader at UBS to light, risk managers speculate....”

Market volatility may have brought UBS losses to light – Risk.net

UBS's Adoboli Admitted to Trades - WSJ

Why Rogue Traders Get Jail But Bad Execs Get A Pension – Forbes

UBS $2 billion loss to trigger investment bank retreat – Reuters

Fitch places UBS's viability rating on rating watch negative – Reuters

Rogue trade suspect's family "heartbroken" – Reuters

UBS $2 bln rogue trade suspect held in London – Reuters

UBS Trader Gets No Miracle as Loss Leads to Arrest – BB

UBS Asked Police to Arrest Adoboli Before Contacting U.K. FSA, Prosecutors – BB

UBS Placed on Review for Downgrade by Moody’s Over Risk Control After Loss – BB

UBS Goes Rogue: What Else Are Bankers Hiding In Their Drawers? – Forbes

Rogue Trader Deals Big Blow To UBS – Forbes

Kweku Adoboli: How Did He Lose UBS $2 Billion? – Forbes

Rouge Trading...Blinded By Profits - Forbes

UBS trader told bank of error, the BBC learns – BBC

Q&A: How do rogue traders do it? – BBC

'Rogue trader' Kweku Adoboli alerted bank himself – The Telegraph

UBS rogue trade deals blow to new risk boss – Reuters

Rogue trader a massive blow for UBS – This is money

Profile: Swiss bank UBS – BBC 

 - -

 Rogue Trade Suspect 'Hires Leeson Lawyers' – Sky News

(SUB) Could it be curtains for Kengeter at UBS? – efinancialnews.com

ETFs. Liquid and low risk unless you work for UBS – Fintag’s Newsletter

How UBS’ Reputation Could Be Damaged Further in Wake of Rogue Trade – The Source / WSJ

Facebook ‘Friends’ Find Unimaginably Cruel Way To Kick Kweku Adoboli When He’s Down – DealBreaker

Charges in UBS trader case – alphaville / FT

Police Charge UBS Trader With Fraud – DealBook / NYT

Rogue Trading 101: How To Lose $2 Billion – Index Universe

“I Have An Error” – Kid Dynamite’s World

 

17th Sep updates

Matt Stoller: Authorized Losses – The Lehman Lesson UBS’s Rogue Trader Missed – naked capitalism

Judge: UBS Trader Held Until Next Week – advancedtrading.com

UBS Rogue Trader Exposes Massive Systemic Risk – Yahoo! Breakout

Dick Bové Suggests You Connect The Dots On This UBS “Rogue Trade” – Deal Breaker

UBS Trader Hires Firm That Advised Leeson – BB

The Rogue’s Gallery – thinkprogress.org

Why Financial Reform Hasn't Stopped Rogue Traders – Curious Capitalist / TIME

UBS trading losses – the regulatory response – alphaville / FT

UBS Faces Questions on Oversight After a Trader Lost $2 Billion – DealBook / NYT

There Are No Rogue Traders, Only Rogue Banks – The Big Picture

'Rogue' Trading Lasted 3 Years – WSJ

UBS Trader Adoboli Charged With Fraud, False Accounting Dating to 2008 – BB

UBS Trading Loss to Be Investigated by U.K., Swiss Financial Regulators – BB

UBS: Rogue Trader Puts Spotlight on Risk Controls – The Street

'Delta', 'Alpha' Teams Provide Cover for 'Rogue' Traders – The Street

Rogue trading at UBS may have gone on for three years, police fear – The Telegraph

UBS rogue trader: Investigations focus on fictitious hedges – The Telegraph

UBS rogue trader: You were warned about ETFs, says Terry Smith – The Telegraph


18th Sep updates

 Scapegoatia-UBS reveals details of Trades – The Trader

The UBShank Redemption Update: No EURCHF Was Harmed In The Scapegoating Of UBS' $2.3 Billion Loss On A 31 Year Old Trader – Zero Hedge

Blocher Seeks Curbs on Swiss Investment Banking, SZ Reports – BB

UBS Probes to Be Done by Sidwell, Deloitte, Telegraph Reports – BB

UBS Probes as Trading Loss May Rise to $2.1 Billion, NZZ Says – BB

UBS Chief Gruebel Tells Sonntag He Doesn’t Plan to Resign – BB

UBS details rogue trades that lost bank $2.3 billion – Reuters

Whither UBS’s investment bank? – Felix Salmon / Reuters

Rogue traders will always pose risk to compliance controls, says industry - Reuters

'Rogue trader' losses engulf UBS – The Telegraph

UBS chief Oswald Gruebel under threat as fraud crisis deepens – The Telegraph

UBS rogue trader helps to justify ring-fencing 'casino' actions of investment banks – The Telegraph

(REG) UBS probe to be run by Deloitte – FT

UBS 'rogue trader': Loss estimate raised to $2.3bn – BBC

UBS trader Kweku Adoboli remanded in custody after fraud charge – BBC

UBS trader Kweku Adoboli charged with fraud – BBC

UBS loss 'came from lots of small trades over months' - BBC

(REG) UBS Unauthorized Trading Losses Put At $2.3B – WSJ

(REG) UBS Suspends Global Advertising Campaign After $2B Fraud – WSJ

(REG) UBS's Gem in Asia – WSJ

(REG) Rogue Trades Could Hurt Industry – WSJ

(REG) UBS Rightly Puts ETFs in Spotlight – WSJ

(REG) Delta Desks Emerge as Mine Fields – WSJ

19th Sep updates

Some comments on the UBS Rogue Trader – Bronte Capital

Regulators Use of Third Party to Probe UBS Trades ‘Bizarre,’ Analyst Says – BB

Loss a setback in building capital: UBS CEO – BB

Don't judge my son yet, father of UBS trader says – BB

Easing SEC Regulations, Volcker Rule, UBS Trader: Compliance – Businessweek

Wall Street Pays For Its Crimes – Forbes

(REG) Trader in UBS scandal was a ‘loyal’ employee – FT

Analysis: The real rogue is not UBS’s Kweku Adoboli but Delta One trading – TBIJ

A failure of all offices – This is the Green Room

Because they Aarrgh – Macro Man

Bonus/Layoffs Watch ’11: UBS Failing To See The Considerable Upside To $2.3 Billion Loss, Says Analyst – Dealbreaker

UBS Investment Bank Chief Urges Employees To Remember Firm’s Legitimate Months – Dealbreaker

Want to trade billions for fun? This is how – Fintag’s

More Incomplete ETF Reporting – Random Roger

Examining the Charges Against a UBS Trader – DealBook / NYT

Make That $2.3 Billion – DealBook / NYT

UBS rogue trade – Kengeter memo – alphaville / FT

20th Sep updates

UBS Scandal Is a Reminder About Why Dodd-Frank Came to Be – DealBook / NYT

How to go from the IT dept to being a rogue trader – The Register

 

Spotting a Rogue Trader – Advanced Trading

UBS loss exposes European trading loophole – Reuters

21st Sep updates
The UBS-Adoboli Scandal Shows the Problem of Negatively Skewed Risk is Still With Us – EconoMonitor

22nd Sep updates
Why Banks Don't Listen to their Risk Managers and Risk Losing Billions – Advanced Trading

Rogue Watch: Beware False Trades – Advanced Trading

UBS CEO Gruebel says has board's backing – Reuters

A rogue trader speaks: 'You live in fear. Your whole life is a lie' – The Independent

UBS Says Investment-Bank Operations Won't Be Sold – WSJ

UBS Suggests Employees Savor This Weekend’s Pebble Beach Outing, As Next Year’s Event Will Be Held At The Hartford Pitch ‘N Putt – Dealbreaker

23rd Sep updates
(reg) UBS Trader Faces New Charge – WSJ

Is Oswald Grubel leaving UBS? – Money Is The Way

UBS Trader to Remain in Custody – DealBook / NYT

24th Sep updates
UBS Chief Resigns Over Trading Scandal – NYT

The board said it regretted Mr. Grübel’s decision. Sure, that’s why one week ago he told a newspaper that as CEO he was responsible for the trading loss, but did not feel guilty and gad not thought about resigning. You’re fired!

UBS’S CEO Is Gonna Take Off Now – Dealbreaker

UBS’s trading loss: Swiss miss – The Economist

A huge loss at UBS will make it harder to revive its investment bank

Meanwhile, in Downtown Zurich… – The Reformed Broker

“I take money from UBS "financial advisors" all day long.  I wrench people out of its horrible hedge funds and brokerage products and I take the calls from people who say ‘all I wanted was to work with my guy at PaineWebber, how did I end up dealing with these clowns?’”

UBS' CEO Booted – ZH

“The UBS "Rogue Trader" incident which was anything but rogue and certainly involved far more than just a trader, has struck at the very top”

UBS rogue trader: Oswald Grübel resigns – The Telegraph

UBS rogue trader: KPMG to lead investigation into bank failings – The Telegraph

UBS jobs in peril as CEO quits over alleged rogue trader scandal – The Guardian

25th Sep updates
UBS: Ossie out – Schumpeter / The Economist

New UBS boss seeks fresh start after trading scandal – Reuters

UBS hopes small is less risky – BBC

26th Sep updates 
UBS’s Grübel Steps Down, More May Follow – The Source / WSJ

UBS Shares Rise on Chief’s Departure – DealBook / NYT

Rogue Trading Leads UBS Chief to Resign – NYT

Who Wants To Be CEO Of UBS? – Dealbreaker

27th Sep updates

UBS in ‘Disarray’ as CEO Gruebel Is Replaced by Ermotti – Businessweek

UBS 'rogue trader' offices to be knocked down – The Telegraph

Minor UBS Shareholder Wants Everybody Out, Has A Few Ideas About Future Leadership – Dealbreaker

UBS Shareholders Push for Deeper Changes – WSJ

UBS’s New Chief: We Will Keep Our Investment Bank – DealBook / NYT

In Rogue Trading Scandal, a Reason to Enforce the Volcker Rule – DealBook / NYT