Financial Regulatory Forum

Negligence charges gain clout in SEC enforcement arsenal

By Guest Contributor
May 9, 2012

By Julie DiMauro

BOSTON/NEW YORK, May 9 (Thomson Reuters Accelus) - Financial services firms may face more negligence cases brought by the U.S. Securities and Exchange Commission, reflecting a greater willingness by the commission to base charges on negligence findings, industry professionals were told at a Thomson Reuters forum.

Taking on trading desk risk: the lessons of UBS and MF Global

By Guest Contributor
November 22, 2011

Traders work at their desks in front of the DAX indexBy Rachel Wolcott

LONDON/NEW YORK, Nov. 22 (Thomson Reuters Accelus) – When the young UBS trader Kweku Adoboli turned himself in after allegedly having lost $2.3 billion on the Swiss bank’s delta one desk, many asked how such a huge loss could have happened without anyone knowing. The short answer was, in part, that Adoboli’s back-office experience gave him inside knowledge which permitted him to game UBS’ control systems and hide the fraud. The same excuse was trotted out to explain Jérôme Kerviel’s $6.8 billion loss at Société Générale in 2008, but it must surely take more than a stint in the bank office to fool banks’ risk controls systems.