Two charges claim that Kweku Adoboli, trader at UBS, falsified records of exchange traded funds – complex financial instruments – between October 2008 and December 2009 and then January 2010 and September 2011. A third charge alleges that he committed fraud between January 2011 and September 2011 while senior trader in global synthetic equities. He is represented by the law firm Kingsley Napley, which also advised Nick Leeson, the rogue trader who brought down Barings in 1995.
The head of investment banking arm at UBS has defended the division in the wake of the $2.3bn (£1.45bn) alleged rogue-trading scandal and urged staff to repair the "financial damage" of what he claims was a "single calculated act of deception".
Amid speculation that the Swiss bank might scale back its investment banking arm, Carsten Kengeter told staff: "Over the weekend our partners in other divisions have confirmed that they cannot achieve their ambitious goals without a healthy and vibrant investment bank alongside, co-operating at every level."
He stressed that the bank was "no longer at financial risk" from the alleged actions of Kweku Adoboli, the trader charged with fraud and false accounting on Friday and in custody ahead of a bail hearing on Thursday.
"Now is the time for everyone across the investment bank to demonstrate to clients, shareholders, regulators and other stakeholders that we are not going to let a single calculated act of deception deflect us from achieving our long-term strategic goals," he said.
Adoboli has not entered a plea against the charges; his father in Ghana has asked for his son to be given a fair trial.
The 31-year-old was arrested on Thursday at 3.30am after the bank called in the City of London Police. UBS had originally put the potential loss at $2bn but has raised the cost since closing out his positions on the market.
One of the three charges faced by Adoboli dates back to 2008 piling more pressure on the bank's management and bank is now trying to bolster its procedures. "We are undertaking this work diligently and professionally, without conjecture or finger-pointing," Kengeter said. "We will deal appropriately with those individuals who were responsible for significant operational and management supervision lapses, and then we must move on."
He urged staff to raise concerns. "It is very difficult to build and maintain a system which protects us effectively against every possible likelihood of attack, but we will not rest until we have controls that are as watertight as possible. Continued vigilance will be key to ensuring we avoid future failures."
The bank had been making headway in restoring its reputation after losing $50bn in the credit crunch. Kengeter urged staff to work with "resolve, creativity and energy" to get the back bank on track.
In the month before the rogue trading incident, UBS disclosed plans to axe 3,500 jobs to and fears have been raised that the bank will cut even more jobs as it fights to fill the dent in profits caused by the alleged rogue trading. An update on jobs is expected on 17 November when management had already planned to make a presentation to investors in New York.
