Kweku Adoboli

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Kweku Adoboli
Kweku-426--131609389979750100.jpg
Occupation Trader
Employer Formerly with UBS
Location London

Kweku Adoboli was a trader with UBS, convicted of the largest rogue trading case in UK history in 2015. He served about half of a seven-year sentence and got out in 2015. He was due to be deported back to his home country of Ghana in 2018.[1][2]

He was arrested on September 15, 2011, for rogue trading amounting to $2.3 billion in losses. Hired in 2016, he was employed for five years in UBS's equity trading division, reportedly racking up the losses trading un-hedged stock index futures. He was 31 years old at the time of his arrest.[3] [4][5][6][7] He worked at UBS's Delta One desk, where traders typically helped clients speculate on, or hedge the performance of, a basket of securities. The group also traded using the bank’s own money.[8]

Adoboli’s actions brought about a review at UBS that led to 10,000 jobs being eliminated and parts of the investment bank that UBS spent more than a decade building being dismantled.

Adoboli's "rogue trader" charges follow trading scandals at other banks. Jerome Kerviel, arrested in January 2008, lost $6.7 billion at Societe Generale Bank, while doing arbitrage on European index futures.[9] He was sentenced to three years in prison in 2010. Another similar trading scandal involved Nick Leeson who lost $1.3 billion in futures trading at Barings Bank. The losses led to the collapse of the bank. Leeson was sentenced to six years and served three years before his release.

Background

Adoboli is of Ghanian decent and the son of a senior United Nations official who grew up in Isreal, Syria and Iraq before attending the exclusive UK's Ackworth School in West Yorkshire. He has lived in England since he was four and battled authorities against his deportation.[10]

Education

He graduated from the University of Nottingham in 2003 with honors and degrees in computer science and management.

References

  1. The Trader Who Shattered UBS Now Faces His Own Reckoning. Bloomberg.
  2. Trader guilty of UK's biggest fraud detained prior to deportation. The Guardian.
  3. Political Pressure On UBS Increases. Wall Street Journal.
  4. The UBS 'Rogue Trader' Scandal: Just Who Is Kweku Adoboli?. Time.
  5. Rogue trader causes $2 billion loss at UBS. Telegraph.
  6. Rogue trader causes $2 billion loss at UBS. LA Times.
  7. Trader hinted at turmoil in Facebook posts. Financial Times.
  8. The Trader Who Shattered UBS Now Faces His Own Reckoning. Bloomberg.
  9. The world's biggest rogue traders in recent history. CNN.
  10. The UBS 'Rogue Trader' Scandal: Just Who Is Kweku Adoboli?. Time.