Rogue trader causes €1.66bn loss at UBS

SWISS banking giant UBS said yesterday that a rogue trader has caused it an estimated loss of €1.66 billion, stunning a beleaguered banking industry that has proven vulnerable to unauthorised trades.

Police in London said they arrested a 31-year-old UBS trader, Kweku Adoboli, in the alleged fraud. UBS declined to confirm his name.

Switzerland’s largest bank warned that it could report a loss for the entire third quarter as a result of the rogue trade, while shares in UBS AG plummeted 8.7% to 9.98 francs (€8.28) on the Zurich exchange by mid-afternoon.