Tag:

rogue trader

Latest Headlines

Latest Headlines

UBS stumbles, rogue trader case proceeds

The Kweku Adoboli scandal has been nothing short of a nightmare for UBS. The rogue trader's $2.3 billion losses prompted the resignation of CEO Oswald Grübel and the co-heads of equities. Eight people in the delta trading division were suspended and multiple private and public probes have been

Fomer Goldman Sachs employee charged with insider trading

In an interesting civil action, the SEC has charged a former Goldman Sachs trader with insider trading, alleging that he tipped of his father to some impending ETF re-balancing activity that allowed them to generate a roughly $57,000 illicit profit. The trades were made in the name of another fami

Fine line between prop trading and market making

The Kweku Adoboli scandal at UBS has highlighted once again the tricky nature of proprietary trading versus market making. In the U.K., there is no Volcker amendment that bans proprietary trading. Proprietary trading as part of market making operations continues to thrive, especially as part o

UBS rogue trader Kweku Adoboli: Shades of Jerome Kerviel

The Kweku Adoboli story at UBS sounds all too much like the Jerome Kerviel story at Societe Generale. Both worked back office or middle office when they started at their banks, building up a massive amount of compliance and systems knowledge. Both then went to work as traders for their banks'

Delta One desks, ETFs and the UBS fiasco

Both Kweku Adoboli, the UBS trader who was arrested for his role in the latest European rogue trading scandal, and before him Jérôme Kerviel, the Société Générale rogue responsible for $6.8 billion in losses in 2008, worked on Delta One desks, which have thrived in this Golden Era of exchange trad

Another inside fraud job: JPMorgan victimized

Over on FierceComplianceIT , we have noted that internal errors and rogue employees are often the cause of financial crimes, despite the fact that external breaches and cyber scams get the bulk of attention. Every now and then a rogue trader will generate headlines, but they seem to be forg

Trading gets harder for top firms

Lehman Brothers  lost money trading on 40 days in the first half of this year, up from just three days last year, reports Financial News Online . Morgan Stanley  lost money on 24 days versus just one a year ago. Goldman Sachs  lost money on 37 days compared with 11 a year ago. It seems

Some tantalizing near-disclosures from Morgan Stanley

We noted in our write up about Morgan Stanley's earnings that a trader lost $120 million due to trades that "did not comply with Firm policies." Since then, Morgan Stanley said it suspended a trader in London, but beyond that it was mum. The New York Times asks: How long had the trader had