UBS: Our Risk Systems Did Detect $2bn Rogue Trader

A few weeks ago, UBS employee Kweku Adoboli (universally described as a "rogue trader") ran up a $2 billion loss for his employer; many readers wondered how it is the systems which allow trades to happen at all aren't better tuned to catch such massive cash flows without triggering alerts. Now, reader DMandPenfold submits a report from Computerworld UK in which the bank claims that such triggers were in place — they were simply not acted on. From the article: "UBS has insisted its IT systems did detect unusual and unauthorised trading activity, Interim chief executive Sergio Ermotti, who is running the company following Oswald Grubel's resignation last month, sent a memo to employees saying the bank is aware that its systems did detect the rogue activity. In the memo, Ermotti wrote: 'Our internal investigation indicates that risk and operational systems did detect unauthorised or unexplained activity but this was not sufficiently investigated nor was appropriate action taken to ensure existing controls were enforced.'"

Comments

Re:Called it

[Doc Ruby]

No, the logic of that post is perfectly clear. Someone says bank CEOs screwing up hurts everyone but those CEOs. Like people who have lost jobs, or can't get one, after bank CEO screwups destroyed the economy's growth, and the jobs with it. Herman Cain says it's the jobless person's own fault for not having a job - and even their own fault they're not rich. The contrast is that Cain says it isn't the bank CEO's fault people don't have jobs, it's their own fault.

But that's obvious. Except perhaps to a Republican, er "Libertarian", like you. Who spent the entire Bush era telling us Chewbacca was on Endor whenever people complained that deregulation was killing us.