Posted: Sep 18, 2011 9:47 AM by Dr. Anya Winslow
GENEVA (AP) - Swiss bank UBS has increased the loss it expects from its rogue trading incident to $2.3 billion from the $2 billion figure earlier provided.
The bank said Sunday it has "now covered the risk resulting from the unauthorized trading" and its equities business "is again operating normally within its previously defined risk limits."
UBS says the loss resulted from unauthorized speculative trading in various stock markets over the last three months.
It says the trader responsible hid the magnitude of the risk to which the bank was exposed by creating fictious future orders.
The trader, 31-year-old Kweku Adoboli, was arrested Thursday and charged Friday with acts of fraud and false accounting dating back to 2008.
(Copyright 2011 by The Associated Press. All Rights Reserved.)