Swiss bank UBS admits lax controls lead to rogue trader scam
SCANDAL-hit UBS today admitted internal financial controls were "not effective" when alleged rogue trading took place at the bank, as it revealed the action had triggered a 39pc slump in profits.
The Swiss bank posted a third-quarter profit of 1 billion Swiss francs (£709.8 million), compared to 1.66 billion Swiss francs last year, including the 1.8 billion Swiss francs (£1.3 billion) allegedly lost by trader Kweku Adoboli.
UBS said an investigation had discovered monitoring controls, designed to ensure trading activity was valid and recorded, were not in place on December 31 last year.
Former UBS trader Adoboli, 31, was last month charged with committing false accounting between October 2008 and September this year and fraud between May and September this year. He has yet to enter a plea against the charges.