Ben Johnson of The Root's partner site Slate.com is reporting that alleged UBS "rogue trader" Kweku Adoboli has cost the Swiss bank $300 million more in losses than initially expected. Johnson writes:
A statement from the bank said that losses from index futures on Standard & Poor’s 500, the DAX and EuroStoxx were initially overlooked because the numbers were hidden within the bank’s risk exposure limits. The adjusted number of losses for the institution due to alleged unauthorized trading by Adoboli, who was arrested on Thursday, is now $2.3 billion.
UBS's board of directors has set up a special committee that will conduct an independent investigation of the unauthorized trading activities and their relation to the control environment.
We're still trying to figure out how a "rogue trader" can get away with falsifying $2.3 billion in trades. Where are the checks and balances? What does this mean for UBS? Will the wealthy now have to find a new bank to "keep" their money?
Read more at Slate.com.
In other news: Obama to Unveil Debt-Reduction Plan.