A rogue trader who cost a major international bank £1.4 billion has been found guilty of fraud.
32 year-old Kweku Adoboli exceeded his trading limits and failed to hedge trades at the London office of Swiss bank UBS.
A jury at Southwark Crown Court has found him guilty of one charge of fraud - it is still considering another as well as four counts of false accounting. £2.8 billion was wiped off UBS's share value after the scale of Adoboli's deals was discovered.
UBS set a daily trading limit for the exchange traded funds desk of 100 billion US dollars (£61.5 billion) and also used hedging to reduce risk - for example buying one type of investment and simultaneously selling a similar one to mitigate any loss.
Prosecutors claim Adoboli failed to hedge several of his investments in order to make a bigger profit for the bank and larger bonus for himself.
– PROSECUTING, SASHA WASS QC
At one stage Mr Adoboli was in danger of losing the bank nearly 12 billion US dollars (£7.4 billion) of unhedged investments.
Kweku Adoboli worked for UBS's global synthetic equities division, buying and selling exchange traded funds (ETFs), which track different types of stocks, bonds or commodities such as metals.
UBS discovered in September last year that Adoboli's deals had caused the bank a loss of 2.3 billion US dollars (£1.4 billion), and "his fraud had unravelled", the court was told.
– PROSECUTING, SASHA WASS QC
To put the huge trading loss in some sort of perspective, 2.3 billion US dollars is enough to pay a year's salary for nearly 70,000 new nurses or two Wembley stadiums or perhaps even six new hospitals.
This colossal loss arose purely as a result of Mr Adoboli's fraudulent deal making, which amounted as you will see, to nothing more than gambling.
He was lying to the bank, both to his senior managers, his risk control department, and the accounts department.
In effect he was risking the very existence of the bank by gambling its resources, ultimately for his own benefit.
A City trader who gambled away £1.4 billion thought he had "the magic touch" but caused "chaos and disaster", a court has heard.
Kweku Adoboli, 32, exceeded his trading limits to try to get a bigger bonus and boost his ego, Southwark Crown Court was told.
He is accused of two counts of fraud and two counts of false accounting while working for Swiss bank UBS.
The charges relate to the period between October 2008 and last September.
– Prosecuting, Sasha Wass QC
He is on trial because he lost his bank 2.3 billion US dollars (£1.4 billion). He fraudulently gambled it away. He also in doing so wiped around 10% or about 4.5 billion US dollars (£2.8 billion) off the bank's share price.
He did all of this by exceeding his trading limits, by inventing fictitious deals to conceal this and then he lied to his bosses.
Mr Adoboli's motive for this behaviour was to increase his bonus, his status within the bank, his job prospects and of course his ego.
Like most gamblers, he believed he had the magic touch.
The trial of a City trader accused of losing £1.4 billion while working for Swiss Bank UBS is due to begin. Kweku Adoboli will appear at Southwark Crown Court in London, to face two counts of fraud and two counts of false accounting. The prosecution case is expected to open in a few days time.
Adoboli, 32, Whitechapel, east London, is accused of losing the money in Britain's biggest alleged banking fraud. He worked for UBS's global synthetic equities division, buying and selling exchange traded funds, which track different types of stocks, bonds or commodities such as metals.
Adoboli is accused of dishonestly using his position to try to make a personal gain, and causing UBS losses or exposing the bank to the risk of loss. It is alleged that he lost a total of 2.25 billion US dollars and charges relate to the period between October 2008 and last September.
A city trader accused of losing a record £1.4 billion in a banking fraud has been released on bail.
Kweku Adoboli from Whitechapel was working for Swiss bankers UBS when he lost the money last year.
He denied two counts of fraud and two of false accounting at an earlier hearing but was remanded in custody. He's due to stand trial in September.
A city trader accused of gambling away £1.5bn in Britain's biggest banking fraud has appeared in court.
Kweku Adoboli, 31, from Clark Street in east London is accused of losing the money while working for Swiss bank UBS.
He has denied two counts of fraud and two counts of false accounting at an earlier hearing.
A provisional trial date has been set for September.