Meager Income

Pay Off Debt, Retire Comfortably on Meager Income, Win the Lottery, Not Necessarily in that Order

UBS Trader Loses $2.3 Billion

Posted on | September 17, 2011 | No Comments

Trading is risky, sometimes you lose, sometimes you win and in some cases you end up in jail.  Like, Jerome Kerviel who was sentenced to 3 years in prison and asked to repay the $6.8 billion loss, Kweku Adoboli was also arrested for trading losses.  UBS reported that the fraud has taken place for the last three years.  Both of these individuals were 31 when the alleged trading was discovered and both worked on trading desks called delta-one.  Their jobs were to buy shares and then hedge those bets and exploit price differencesHe was apparently doing quite well in his career and able to command a 7 figure salary.

I find it very difficult to believe that UBS did not know about the trading.  I also believe that if the trade had gone his way he’d be a hero.



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