February 28, 2024

DealBook: British Regulator Hires KPMG for Rogue Trading Inquiry

Kweku M. Adoboli, the UBS trader accused of costing the bank $2.3 billion in losses, at the City of London Magistrates Court on Thursday.Sang Tan/Associated PressKweku M. Adoboli, the UBS trader accused of costing the bank $2.3 billion in losses, at the City of London Magistrates Court on Thursday.

LONDON — Britain’s financial regulator said Friday that it had appointed accounting firm KPMG to help with the investigation into unauthorized trading at UBS.

The regulator, the Financial Services Authority, said last week that it would start an investigation together with the Swiss financial watchdog to establish how a trader was able to lose the bank $2.3 billion. A spokeswoman for the F.S.A. confirmed the appointment and said it was not yet clear how long the investigation would take.

It is not unusual for financial regulators to seek help from big accounting firms when the investigations are more complex, include more data or require more resources than normal. UBS would pay for the costs, the F.S.A. said. The bank already started its own internal inquiry into the events that lead last week to the arrest of Kweku M. Adoboli, a 31 year-old trader who remains in police custody.

UBS, meanwhile, extended its board meeting in Singapore that already lasted three days into the weekend, a spokesman for the bank said.

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The board has been discussing the future shape of its investment banking business, which the UBS chief executive, Oswald J. Grübel, has said previously he would like to scale back, and awaited first results of its internal inquiry into the trading losses.

The executives are to stay in Singapore until the end of the week and attend Formula One car racing Grand Prix in Singapore, where UBS is one of the main sponsors and plans to entertain clients.

Article source: http://feeds.nytimes.com/click.phdo?i=2daa0ac1088b7eddb72234596dc089ac

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