• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 7 hours U.S. Presidential Elections Status - Electoral Votes
  • 6 hours 1 in 5 electric vehicle owners in California switched back to gas because charging their cars is a hassle, new research shows
  • 8 hours *****5 STAR Article by Irina Slav - "The Ugly Truth About Renewable Power"
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Americans are not agreement capable.
  • 1 day How US Capitalism Uses Nationalism
  • 12 hours Joe Biden's Presidency
  • 16 hours Сryptocurrency predictions
  • 17 hours Forecasts for Natural Gas
  • 1 day The Painful Death of Coal
The Biggest Winners From The Texas Freeze

The Biggest Winners From The Texas Freeze

The cold spell that paralyzed…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Trader Sentenced to Seven Years in Prison for $2.3 Billion Loss on Illegal Trade

Kweku Adoboli, the ex-UBS AG trader, who caused $2.3 billion in losses for his bank due to illegal, unauthorised trading (the largest in British history), has been sentenced to seven years in jail.

Throughout the trial Adoboli pleaded not guilty to the claims of fraud, stating that his managers at UBS pushed the traders to take risks and break rules.

Following a similar case at Societe Generale SA, where Jerome Kerviel caused a $6.3 billion trading loss, UBS warned all of its employees to keep an eye out for illegal trading. Adobli, meanwhile, claimed that the only way to achieve the bank’s set goals was by ignoring such warnings.

Andrew Penhale, deputy head of fraud at the Crown Prosecution Service, explained that “behind all the technical financial jargon in this case, the question for the jury was whether Kweku Adoboli had acted dishonestly, in causing a loss to the bank of $2.3 billion. The amount of money involved was staggering, impacting hugely on the bank, but also on their employees, shareholders and investors.”

The ten man jury unanimously voted that Adoboli was guilty of fraud.

Related Article: Recent Global Events Investors Should be Keeping an Eye On

Judge Brian Keith told Adoboli upon his sentencing, that, “you are profoundly un-self-conscious of your own failings. You were arrogant enough to think that the bank’s rules for traders didn’t apply to you.”

According to Bloomberg, at least 11 UBS employees were either fired, or resigned, in the fallout of this case. Including; CEO Oswald Gruebel; the heads of global equities, Yassine Bouhara and Francois Gouws; Adobli’s colleagues on the ETF desk; and his former managers, Ron Greenidge and John DiBacco.

After the verdict had been given Adoboli said that, “in the end, the reason I’m most sad is because these losses weren’t the result of dishonest or fraudulent behaviour. These losses were the result of a group of traders who were asked to do too much, with too little resources, in a market that was too volatile.”

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News