Sept 15, 2011
Switzerland’sÂ UBS said on Thursday it had discovered unauthorized trading by a trader in its investment bank had caused a loss of some $2 billion.
“The matter is still being investigated, but UBS’s current estimate of the loss on the trades is in the range of $2 billion,” the bank said in a brief statement just before the stock market opened.”It is possible that this could lead UBS to report a loss for the third quarter of 2011.No client positions were affected.”
UBS shares immediately tumbled 8 percent at the open and were trading down 5.8 percent at 10.30 francs at 0714 GMT, compared with a flat European banking sector index.
“It is amazing that this is still possible,” said ZKB trading analyst Claude Zehnder. “They obviously have a problem with risk management. Even when the amount isn’t so high it is once more a loss of confidence that casts UBS in a poor light.”
“With this they are losing a lot of credit that they had regained with effort,” he added.
This article was posted: Thursday, September 15, 2011 at 3:37 am