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2.3 billion USD
There are multiple questions arising after one reads the UBS press release.
How can you book fictious trades offsetting positions probably north of 10 Billion USD? Where are the back office procedures checking actual vs booked trades? 10 Billion not actually offset by physical trades, should give some “mismatches” in real money on the accounts? What does the Treasury Department actually do, if not run the short term funding for positions etc? Etc….Wonder what would have happened if the trade was a plus trade by 2.3 billion USD?
Press Release by UBS.
UBS provides more detailed information on unauthorized trading
On September 15, 2011 UBS announced that it had discovered unauthorized trading in its Investment Bank. This trading was conducted by a trader in its Global Synthetic Equity business in London. The trader in question has been charged by UK authorities with fraud by abuse of position.