Rogue trader costs UBS $2 billion

By the CNN Wire Staff

September 16, 2011 — Updated 0133 GMT (0933 HKT)

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UBS reports $2 billion trading loss

STORY HIGHLIGHTS

  • UBS itself reported the rogue trader to police, officers say
  • British media name the arrested man as Kweku Adoboli
  • The loss could be caused by anything from fraud to “stupidity,” an expert says
  • It would be among the largest losses in unauthorized trading

(CNN) — A rogue trader has cost UBS an estimated $2 billion, the Swiss banking giant announced Thursday, revealing what could be the third-largest loss of its kind in banking history.

A $2 billion rogue trading loss would be all but unprecedented, market analyst Ralph Silva told CNN.

“We have only had three or four other situations… in the billions, and that is exactly what happened,” he said.

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