UBS trader accused of £2.3bn loss was overdrawn
The ex-UBS trader accused of gambling away $2.3bn in unauthorised trades earned £360,000 a year but was overdrawn, a south London court heard today.
Not only were Kweku Adoboli’s personal accounts mostly overdrawn but he borrowed money from various short-term lenders, Esther Schutzer-Weissmann, the London lawyer prosecuting his case said.
He is charged with falsifying records on exchange-traded fund transactions and accounting-related documents as far back as 2008, and with fraud for abusing his senior trader position. Mr Abobali denies both charges.
Spread betting
Mr Adoboli, 32, also had several spread-betting accounts in violation of the bank’s rules, the court heard. UBS’s compliance department notified Mr Adoboli that he should have flagged his personal trading through the spread-betting firms IG Index Plc and City Index Ltd to UBS beforehand, the prosecutor said.
Mr Adoboli’s UBS pay rose from £40,500 in 2005 to £360,000 in 2010, including his bonus, jurors head at the opening of his trial last week. He lost more than £120,000 through his personal trading with IG Index. His lawyers did not challenge the prosecutor’s information.
Mr Adoboli worked for the Delta One desk in Zurich, which handles client trades and the bank’s own trades.
His lawyers said Mr Adoboli was “keen to proceed with the evidence and ensure that his own account is put forward”.
The trial is scheduled to last eight weeks.