Newspaper article The Evening Standard (London, England)

Rogue Trader Gave Himself Up after Bank Lost [Pounds Sterling]1.3 Billion

Newspaper article The Evening Standard (London, England)

Rogue Trader Gave Himself Up after Bank Lost [Pounds Sterling]1.3 Billion

Article excerpt

Byline: Nick Goodway, Jonathan Prynn and Nicholas Cecil

THE City's system of regulation was called into doubt today after it emerged that UBS trader Kweku Adoboli turned himself in after his alleged [pounds sterling]1.3 billion losses went undetected.

The 31-year-old is understood to have told his immediate superiors on the bank's elite Delta One trading desk that he had taken a huge gamble which had gone wrong on Wednesday morning.

Experts said the fact he turned himself in shows how badly the banks are failing to crack down on "casino" culture.

Liberal Democrat peer Lord Oakeshott said: "How many more billions have gone undetected? There is clearly not a moment to lose before we clean up the casino banking culture. Regulation failed in 2008 and clearly it is failing again. You have to ask if the problem is rogue traders or rogue banks."

Today it also emerged that Adoboli has hired lawyers Kingsley Napley, the same firm that represented Baring Brothers rogue trader Nick Leeson.

As UBS staff in London faced job losses and the prospect of zero bonuses this year, further details emerged of the drama that led to the former public schoolboy's arrest.

UBS did not call City of London police until 1am yesterday. Adoboli was arrested at his desk two-and-a-half hours later. It is understood that between Adoboli confessing and police being called, UBS scrambled desperately to unwind as much of his lossmaking trading position as it could, and tried to find out how he had hidden his losses.

Leading City figures said it was astonishing that none of the sophisticated "trip wires" installed after the collapse of Lehman Brothers, and after previous rogue-trader disasters, had worked.

Chris Roebuck, visiting professor at Cass Business School, said: "Why did the systems not spot this before it got totally out of control? …

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