Can someone explain how a major international bank can be the victim of fraudulent trades by an employee that cause losses of 2 BILLION dollars? How does that happen? Where are the internal controls that would prevent a trader from placing trades of the size or frequency that could result in losses of that magnitude?
You would think we were talking about Bank of America, but no, this time it is UBS, another bank that cannot run a brokerage firm or investment bank.
UBS has proven itself to be a disaster, and it is amazing that more individual at UBS have not gone to jail, or at least been banned from the securities industry. From Auction rate securities, Lehman Principal Protection Notes, Tax Evasion, rigging municipal bond transactions in 36 states, UBS has been accused of all sorts of fraud in the past few years, and the fines alone have totaled millions of dollars. One can only imagine the losses that some of this activity caused to its clients.
Now its own employee has caused losses of 2 BILLION dollars.
HEARD ON THE STREET: Faith in UBS Goes Rogue - WSJ.com
Faith in UBS Goes Rogue
