UBS and the alegged Rogue Trader-Summary
Much has been written on the UBS Rogue Trader theme today. We will hear more on this story in during the coming days. One thing is for sure. To blow up, if that even is true, 2 Bln USD is quite hard to accomplish. One needs to have some rather big positions. Those kind of positions are almost impossible to accumulate in the Equities Market. Below is a good recap of some of the stories today.
Guest Post by Morelivers on UBS and the alleged Rogue Trader.
This is just crisis porn and more suitable for late-night viewing. Fortunes have been made and mostly lost, so this is a good primer on what to expect (FT writing about your Facebook status updates) when the middle office finds those hidden trade confirmations. If you have been lucky or only somewhat unlucky in the markets, this can be thought as a reminder that things could be much, much worse for you.
UBS ROGUE TRADER Linkedin profiles of the perp and his boss. Delta One, just like in SocGenThe curse of Delta one strikes UBS – alphaville / FT
Internal memo to employeesUBS rogue trader – alphaville / FT
Indirect cost increases: more risk management, investor risk aversion, bad reputationUBS rogue trade – the wider costs – alphaville / FT
FSA broker profile, Twitter account, also points out that similar trouble in quant funds can be expected.SocGen Redux – ETF Trader At Center Of UBS Rogue Trade – Zero Hedge
UBS Reports $2 Billion Loss by Rogue Trader – DealBook / NYT
Mandatory look at previous famous cases.Traders Gone Rogue: A Greatest-Hits Album – DealBook / NYT
Points out that UBS’s risk management has been criticized in the past, too.Why Didn’t UBS’ Risk Systems Throw Up an Alert? – The Source / WSJ
The timing just after the Vickers report puts an interesting twist to the debates on banking reform: “As for the bankers, they remind me of the post-1815 Bourbon monarchs who had “learned nothing and forgotten nothing”.”** What’s $2 billion between friends? – Buttonwood’s notebook / The Economist
Is it even extraordinary? (Short piece)** Too big to care – This is the Green Room
Points out that the loser rogues are tolerated because of winner rogues** What Do You Call A ‘Rogue’ Trader Who Makes $2 Billion? A Managing Director – MarketBeat / WSJ
Profile of the “man of the hour”Meet Kweku Adoboli – efinancialnews.com
Speculates that the position was in EURCHF, and could have been a long volatility play.UBS and the Big Trade? – The Trader
UBS Rogue Trader Had Been “Reduced To Watching Fox News For Guidance” – Zero Hedge
A rogue trader at UBS or a rogue bank? – Business blog / FT