Apparently, a finance newbie, who’s only three years out of college, can lose $2 billion trading for one of the biggest financial institutions on Earth before anyone has a clue.
Such news really makes you feel good about the present state of banking, doesn’t it?
According to Reuters, Adoboli’s fiscal misconduct took place between October 2008 and December 2009, and January 2010 and September 2011.
He’s accused of falsifying “an exchange-traded fund made or acquired for an accounting purpose” and falsified “an exchange-traded fund transaction and other internal records.”
UBS (NYSE: UBS) insists that the loss won’t affect its fundamentals.
But investors aren’t buying it – UBS shares have been down as much as 12.22% since Wednesday.
The end could be near for the venerable Swiss giant’s investment banking business.
UBS has a history of financial mishaps (or as Reuters says, “major risk management glitches”).
And the $2 billion that just disappeared from the balance sheet erases the cost savings of a recent plan to cut 3,500 jobs.
With that in mind, what’s the over/under on UBS Chief Executive, Oswald Gruebel’s, tenure?
I say he’s gone inside of six months.
Ahead of the tape,