This morning, Switzerland-based UBS announced that a rogue trader caused it to lose more than $2 billion from unauthorized trades. As a result, the bank may report a loss for the entire third quarter.
“From the scale of this case you can be sure that it’s the biggest we’ve ever seen for a Swiss bank,” Tobias Lux, a spokesperson for the Swiss banking regulator Finma, told the Associated Press.
Although UBS is still in the process of investigating the incident, London authorities arrested Kweku Adoboli, a 31-year-old UBS trader.
According to UBS, no client money was involved in the alleged fraud. Still, the incident comes at a time when the bank is still trying to recoup losses tied to the international economic crisis and repair its reputation after a string of tax evasion cases.