LONDON — UBS trader Kweku Adoboli, accused over the Swiss banking giant’s $2.3 billion losses from unauthorized trades, was “sorry beyond words,” his attorney said Thursday.
Adoboli, 31, who was charged with four counts of fraud and false accounting, did not enter a plea as he appeared in court in London. He was remanded back into custody until Oct. 20.
Lawyer Patrick Gibb, told the City of London Magistrates Court that his client was “sorry beyond words for what has happened. He went to UBS and told them what he had done, and stands now appalled at the scale of the consequences of his disastrous miscalculations.”
The trader was employed by UBS to work in its exchange-traded funds business in London on an equities desk known as Delta One.
The charge against him alleges, “While occupying a position, namely being a senior trader with Global Synthetic Equities, in which you were expected to safeguard, or not to act against, the financial interests of UBS Bank, you dishonestly abused that position intending thereby to make a gain for yourself, causing losses to UBS or to expose UBS to risk of loss.”
UBS discovered the massive financial hole last week and Adoboli was subsequently arrested. The prosecution said some of the unauthorized trades dated back to 2008.
British regulators are examining multiple cases of possible improper or unauthorized trading at banks operating in London, according to people familiar with the matter, cited by The Wall Street Journal.
The UK’s Financial Services Authority is building cases against individuals suspected of engaging in improper trading, these people said. The agency is also considering potential actions against institutions that did not prevent the alleged trades from taking place, they added.