To make matters worse, UBS revealed that a rogue trader reportedly lost $2 billion in assets. London officers suspect European equities trader and UBS employee, Kwek Adoboli, to be in connection with the case and have arrested him, per an unknown source.
In light of the institution’s recent struggles since 2008 to reacquire financial stability, and salvage its issues relative to its declining client base, this situation has raised public scrutiny and posed questions regarding its internal management infrastructure and risk polices.
According to the Washington Post, Switzerland Liberal party president Fulvio Pelli states, “For a bank that has made mistakes in the past, it’s absolutely unacceptable.”
According to Dealbook in the Times, Switzerland’s biggest bank expects incur a loss during this third quarter, as a result of the "unauthorized trades," which didn't impact client positions.
It is reported that the Swiss trading tumbled 9.6% following the announcement.
UBS is still investigating the matter, but the recent instance has presented yet another challenge to the Swiss bank.
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