Oh, look! A global giant banking scandal……What a surprise!
Two co-heads of global equity, Francois Gouws and Yassine Bouhara, resigned from the Swiss bank amid a scandal involving 2.3 Billion in losses.
Their resignation is due to the mismanagement of their department. If you’ll remember, Kweku Adoboli, a 31-year-old trader was arrested in London on Sept. 15 on charges of fraud linked with unauthorized trades, who worked under the direction of Gouws and Bouhara.
Not to worry, the corporate machine will continue to churn on, as Mike Stewart, who joined UBS from Bank of America Merrill Lynch in July will take over the department’s operations.
Several other employees are suspended for neglecting to take action on reports of illegal trading being conducted out of their London office. Further disciplinary action will be applied pending the results of an internal investigation. It seems like everyone knew but no one said anything, fraudulent trading is just a regular day at the office for these guys.
It is rumored that higher ups are ready to stick it to the departing executives; they will be leaving without severance pay.
In a memo obtained by the media UBS alleges the fraud only dates back three months; the U.K. prosecutors have indicated that it may have begun as early as 2008. For a financial accounting firm I would expect them to be better able to determine when something happened, since UBS insists they were aware of when the fraudulent activity began (but they neglected to stop it). So either the prosecution is lying (could be) or UBS is lying or it doesn’t realize WHEN the fraudulent activity began.
Could it be because these financial firms aren’t concerned about losses?
After its all said and done, UBS will still bring in ‘modest profits’ for this quarter. And quiet as its kept, the firm hasn’t lost any clients or suffered further litigation from investors.
Strange that some big money shit hit the fan to the tune of 2.3 Billion and NOT ONE client got flung on. Stay tuned..there is definitely more to this story.