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UBS rogue trader Kweku Adoboli guilty of fraud

February 19. 2013 6:16PM
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(AP) A rogue trader who lost $2.2 billion in bad deals at Swiss bank UBS was convicted of two counts of fraud on Tuesday.

Ghanaian-born Kweku Adoboli, 32, exceeded his trading limits and failed to hedge trades, allegedly faking records to cover his tracks at the bank's London office. At one point, Adoboli risked running losses of up to $12 billion.

A conviction for fraud carries a maximum jail term of 10 years.

The jury found Adoboli innocent of four other false accounting charges.

Adoboli admitted the losses, but said he was pressured by staff to take risks.

He also testified last month that he had been trying to help UBS survive after it amassed losses of $52 billion during the 2007-2008 global financial crisis.

There were times we thought there was no way the organization would survive, said Adoboli, who joined UBS as a trainee in 2003 and rose quickly to become a senior trader. I grew up with UBS. I felt very loyal to UBS.

The conviction on the second fraud count came on a 9-1 vote after Judge Brian Keith said he would accept a majority verdict from the 10-person jury.

The trading loss at UBS was one of the largest in U.K. banking history. U.S.-based JPMorgan Chase lost at least $5.8 billion through bad trades at its London office, the bank's CEO Jamie Dimon said in July.

Associated Press

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