UBS planning to lay off thousands, has been in the news for a while now, I don’t think it is directly related to this loss.
nirm41 Wrote: ------------------------------------------------------- > UBS planning to lay off thousands, has been in the > news for a while now, I don’t think it is directly > related to this loss. It might, they probably were aware of this whole situation long time ago prior to it making the news or contacting the police. If the amount wasn’t so big they probably wouldn’t have even said anything to save their reputation.
UBS has been in trouble for a while now. Layoffs are an annual tradition. Though the worse problem is their talented employees they want to keep leave on their own. That’s what happens when you don’t pay the bonuses you promised.
How come all these “rogue traders” are always in equity derivatives? Is there something specific to this business that makes it easier to lie about trades?
Sweep the Leg Wrote: ------------------------------------------------------- > UBS has been in trouble for a while now. Layoffs > are an annual tradition. Though the worse problem > is their talented employees they want to keep > leave on their own. That’s what happens when you > don’t pay the bonuses you promised. Is this rogue trader one of the so called talented employees you mention? Cause he was part of the elite traders at UBS.
ohai Wrote: ------------------------------------------------------- > How come all these “rogue traders” are always in > equity derivatives? Is there something specific to > this business that makes it easier to lie about > trades? It’s pretty much the only desk that can have those type of gains/losses. as they mainly deal with derivative contacts that doesn’t even need to be cleared till the contact ends. it’s not like you are buying equity securities and have the settle the money T+3 as an example. these are all OTC contracts that no one even knows until it’s settled. I worked at a derivatives desk once just help trader file contracts and match up with counter parties; it’s not uncommon to see notional of $1 000 000 000, even seen $200 billion notional before.
whystudy Wrote: ------------------------------------------------------- > Sweep the Leg Wrote: > -------------------------------------------------- > ----- > > UBS has been in trouble for a while now. > Layoffs > > are an annual tradition. Though the worse > problem > > is their talented employees they want to keep > > leave on their own. That’s what happens when > you > > don’t pay the bonuses you promised. > > Is this rogue trader one of the so called talented > employees you mention? Cause he was part of the > elite traders at UBS. Seems more likely he filled the shoes of a talented trader that left UBS for greener pastures. But, I was talking about the firm as a whole. Not this dude’s particular case.
But many kinds of derivatives don’t have to be cleared until expiration… Take commodity or FX futures, for instance.
Kweku Adoboli was a classmate of a friend of mine. I asked him if he was a bit dodgy back at school and he said “I wasn’t totally surprised to find out that he did what he did” Says he was a good lad at school, head boy, high achiever, but also a bit two faced.
I heard he is a pervert…
I wonder how many of these so-called “rogue traders” we will be reading about as this euro thing plays through.
whystudy Wrote: ------------------------------------------------------- > ohai Wrote: How come all these “rogue traders” are always in equity derivatives? > It’s pretty much the only desk that can have those type of gains/losses. as they mainly deal with derivative contacts that doesn’t even need to be cleared till the contact ends. Does it say specifically what desk he was on? It was probably a delta one type desk imo - not sure it’d be what you first think of when you think equity derivs, but the point is well made. …actually, must’ve been a delta 1000 desk, haha - what a crap firm.
The UBS guy was on an ETF desk trading delta 1 structures. Jerome Kerviel and the guy who crashed Barings Bank also traded equity derivatives.
ohai Wrote: ------------------------------------------------------- > The UBS guy was on an ETF desk trading delta 1 > structures. Jerome Kerviel and the guy who crashed > Barings Bank also traded equity derivatives. Yea, there’s definitely no other way you can get that type of exposure beside derivatives. and it’s really as simple as sending a contract over to another counter party and there goes $2 bln. or the whole bank for that matter (Barings)!
It looks like this guy made the jump from ops just like Kerviel.
I wonder if he got a CFA in order to do it?
Now thanks to these guys, all people jumping from BO to FO will get a bad name.
LBriscoe Wrote: ------------------------------------------------------- > It looks like this guy made the jump from ops just > like Kerviel. Ops is like the back office of the controllers.
WOW WOULD YOU LOOK AT THAT he is a COMPUTER SCIENCE MAJOR and he still made it to the TOP…even without the CFA TALENT TALENT TALENT is whats most important not credentials credentials credentials
It is interesting, despite MS topping the list of largest trading errors there are very few US banks on there. Kind of surprising given I find Europeans to typically be more nuts about compliance, especially the Dutch, haha. I guess in the US it is more acceptable to leave a bank, start a hedge fund and only then threaten the stability of global financial markets. http://en.wikipedia.org/wiki/List_of_trading_losses