UBS admits internal fraud controls were “not effective”
October 25, 2011
Total Loss:
$2 Billion
UBS has admitted that certain internal controls were not in place at the time that rogue trader Kweku Adoboli allegedly ran up a $2 billion (£1.3 billion) loss on the bank’s derivatives desk.
This follows a memo that interim chief executive Sergio Ermotti sent to employees earlier this month saying that the bank was aware that its IT systems did detect the rogue activity but that “this was not sufficiently investigated nor was appropriate action taken to ensure existing controls were enforced”.
Source:
Computer World UK
Posted in:
Internal Fraud