UBS chiefs resign after rogue trading losses

6 October 2011

A pair of senior executives at Swiss bank UBS have resigned following the recent $2.3 billion loss in connection to alleged rogue trading.

Francois Gouws and Yassine Bouhara, co-heads of Global Equities at the financial institution, have both been accepted by Carsten Kengeter, chief executive officer (CEO) of the investment bank division.

In a statement, the bank said: “Their resignations come as they assume overall responsibility for the effective management of the equities business.”

“In addition, appropriate disciplinary action will be taken against other individuals in the equities business as a result of the incident. UBS also expects to take disciplinary action against responsible staff in other functions.”

The resignations follow the departure of the bank’s CEO Oswald Gruebel, who left as he felt it “his duty to assume responsibility for the recent unauthorised trading incident”.

London trader Kweku M Adoboli was arrested and charged with fraud and false accounting in mid-September. He is believed to have carried out the unauthorised trades between October 2008 and the end of 2009.

By Jim Ottewill

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