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UBS trading losses 'amounted to $2.3bn'

Losses incurred by UBS AG as part of the unauthorized trading scandal have been placed at $2.3 billion - markedly more than first reported.

The largest bank in Switzerland had originally calculated the sum at $2 billion and Oswald Gruebel, chief executive officer at the lender, has dismissed calls for him to step down as a result of the incident.

In a statement, the institute said the full extent of the damage caused had been kept hidden due to "fictitious positions".

The bank - which was formed in 1998 following a merger between Swiss Bank Corporation and Union Bank of Switzerland - explained: "The positions taken were within the normal business flow of a large global equity trading house as part of a properly hedged portfolio."

Despite Mr Gruebel's reluctance to resign as a result of the episode, Jason Kennedy - chief executive officer at search firm Kennedy Group - suggested to Bloomberg that action needs to be taken at the top of "the food chain".

By Claire Archer