UBS Rushes To Make Changes After UBS Trader’s $2.3 Billion Loss compliancesearch.com
By Courtney Comstock The fallout from the UBS trader who lost $2.3 billion of the firm’s money betting on index futures is grim. Turns out, he…
One does NOT lose $2.3 Billion in a single day’s trading. It takes months to accomplish.
And this doesn’t go unnoticed by management. Traders do have $$$ limits, and lets not forget end of day reports.
The trader and his line of management were most likely aware of this disaster, and attempted to recoup the loses, but the dice were against them.
They all should be prosecuted
Some one rolled a 7, and they lost.
UBS’s Sr. management must ensure that the appropriate checks & balances are in placed and followed.
I think you’re correct in saying others had to be involved. Even if the trader was booking paper only offsetting positions with extended settlement dates (my understanding of the scheme) those should still cause a “break” in the back office. And if he was able to pull this off on his own management should be fired for stupidity.
NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!