+ Reply to Thread
Page 1 of 2 12 LastLast
Results 1 to 25 of 35

Thread: The Kweku Adoboli Saga

  1. #1

    Default The Kweku Adoboli Saga

    UBS trader arrested over 'rogue deals'

    UBS shares opened sharply lower after the announcement

    Police in London have arrested a 31-year-old man in connection with allegations of unauthorised trading which has cost Swiss banking group UBS an estimated $2bn (£1.3bn).

    He was detained in the early hours of Thursday and remains in custody.

    UBS shares fell 8% after it announced it was investigating rogue trades which would mean the bank making a loss for the third quarter of 2011.

    The Swiss bank said no customer accounts were affected.

    A spokesman for City of London Police, which is responsible for the city's financial district, said: "We can confirm we arrested a 31-year-old man at 3:30am on suspicion of fraud by abuse of position."

    In a letter to its 65,000 staff, UBS said: "The matter is still being investigated, but UBS's current estimate of the loss on the trades is in the range of $2bn.

    "It is possible that this could lead UBS to report a loss for the third quarter of 2011. No client positions were affected.

    "While the news is distressing, it will not change the fundamental strength of our firm.

    "We urge you to stay focused on your clients, who are counting on you to guide them through these uncertain times," the bank said.

    “All the clever systems that the banks now have still cannot stop a determined individual ”Chris Roebuck.Visiting professor, Cass Business School

    ZKB trading analyst Claude Zehnder said the news would damage confidence in UBS. "They obviously have a problem with risk management.

    "With this they are losing a lot of credit that they had regained with effort."

    UBS was rescued by the Swiss state in 2008 following huge losses on toxic assets held by its investment bank.

    It then became embroiled in a serious tax evasion dispute with US authorities and was forced to hand over 300 client names and pay a $780m fine. There was then a second case in which it agreed to hand over data on 4,450 American clients.

    UBS declined to say in which department, or country, the rogue trader operated. However, there is already speculation that the losses may have occurred in foreign exchange trades.

    Earlier this month, the Swiss Central Bank shocked the markets by capping the franc against the euro at 1.20 francs. The move sent the franc-euro exchange rate up 10%, and it is rumoured that some traders lost money.


    Casino banking

    The UBS news has echoes of other rogue trades, including at Societe Generale, where former trader Jerome Kerviel was arrested in 2008 over unauthorised trades which cost the bank 4.9bn euros.

    That topped the losses involved in the infamous case in 1995, which saw Briton Nick Leeson cause the collapse of Barings bank after costing the group £800m.

    Banks such as UBS have tightened their compliance and rules, but this latest breach "is a staggering demonstration that all the clever systems that the banks now have still cannot stop a determined individual getting round them if they want to," said professor Chris Roebuck.

    Mr Roebuck, visiting professor at Cass Business School, said it would fuel the debate over "casino" banking.

    "We will see how the good shareholders of UBS react to yet another investment banking debacle as they ponder their mountain views, probably wishing that the investment bank was caught in the next avalanche and swept away," he said.

    The UBS announcement came on the day that the lower house of the Swiss parliament was due to discuss the country's banking laws to reduce the risks from firms that are considered "too big to fail".

    Last month the bank announced 3,500 jobs cuts. Of the 65,000 staff worldwide about 6,000 are in the UK, with the bulk of UBS's investment banking operations based in London and New York.


    Source: http://www.bbc.co.uk/news/business-14927432

  2. #2

    Default

    I still remain of the firm belief that the banks should not have been bailed out... Those that would collapse should have been allowed to collapse. This nonsense will never end.

  3. #3
    Super Moderator Pope Bitterz D'Alomo's Avatar
    Join Date
    Jul 2010
    Location
    Asamankese,Japan
    Posts
    7,539

    Default

    I suspect the rogue trader to have been operating in the US or in Asia. We are up for another melt down in the US banking sector very soon.I SEE IT COMING.
    ...and i agree with you QUAIQU,the bail out was uncalled for.It's more like handing over your credit card to a shopaholic and keeping your fingers crossed that they don't max it out,knowing very well the history of the shopaholic.
    Beware lest you lose the substance by grasping at the shadow. ~Aesop

    Ignorance can be educated,drunkenness sobered,craziness medicated but there is no cure for STUPIDITY


  4. #4
    Godfather Fashion Yaa's Avatar
    Join Date
    Oct 2010
    Location
    City of Angels, Cali. USA
    Posts
    1,634

    Default

    Alls i want them to do is follow the money¡ did it touch the shores of Gh¿ what schools did Kweku Adoboli attend(funny ho i dont see his name but its all over BBCMONEY as 31yr old K.A)


    all go to the same place ;all come from dust and to the dust all return. who knows if the human spirit rises upward and if the spirit of the animal goes down into the earth?
    ecclesiastes 3:20-21 :-x

  5. #5

    Default

    Quote Originally Posted by Fashion Yaa View Post
    Alls i want them to do is follow the money¡ did it touch the shores of Gh¿ what schools did Kweku Adoboli attend(funny ho i dont see his name but its all over BBCMONEY as 31yr old K.A)
    hahahhaaa Yaa are you concerned about what the money was used for or you just want to know if its stashed in Ghana somewhere...
    Stop Judging me by YOUR standards and way of life....MINE is different




  6. #6

    Default Meet Kweku Adoboli

    Meet Kweku Adoboli

    At 3.30am this morning, a man was arrested by City of London Police in connection with an unauthorised trade that Swiss bank UBS said had cost it around $2bn. The trader is believed to be London-based Kweku Adoboli.

    Adoboli, of Ghanaian decent, joined UBS as a trainee in March 2006, according to the FSA Register. He had been a member of the Delta One team under John Hughes and worked on providing synthetic assets and derivatives for ETF providers.

    He and Hughes are citied as the main market maker contacts at UBS on the websites of a number of ETF providers.

    In June, Nick Pink, head of global equities in Europe, the Middle Easta and Africa at UBS, said: “We want to expand the synthetic business, which is is closely aligned with our strengths in prime brokerage, cash and research business.”

    Like Jérôme Kerviel, who was convicted by French courts for several financial crimes at Societe Generale in 2008, Adoboli had previously had experience in UBS's back office as a trade support analyst, which would potentially have given him the knowledge of how to conceal trades.

    A source close to UBS said Adoboli was a highly-rated trader on the bank’s Delta One desk and dealt with its roster of high-profile London fund clients.

    Several market participants told Financial News this morning that Adoboli may have mis-hedged his exposure to the Swiss franc and attempted to hide it from his team when the market moved against him by overcompensating with a hedge in the opposite direction. Any short position on Swiss franc volatility would have suffered after volatilities rose again earlier this week. UBS claims the third largest share in global foreign exchange trading, and is the biggest trader in the euro/franc pairing.

    Outside Adoboli’s former home in Aldgate – a large loft space that he rented for £1,000 a week – Philip Otabe, Adoboli’s landlord until four months ago, said he was “very, very polite –a salesman sort of chap”.

    “I wouldn’t say he was the tidiest of people though”, Otabe added. “He did get behind a couple of times on the rent, but he always made a payment in due course anyway, so I never had any reason to doubt him”.

    There is a Twitter account that was set up in his name in July, but this appears to have been hacked. His followers include several bankers and hedge fund blog site Zerohedge. There is also a fake Twitter account created this morning in Adoboli's name.

    Before joining the Swiss Bank, Adoboli attended Nottingham University. In October 2001 he was featured in a Sky News report about Freshers Week of which he was coordinator.

    He told Sky that the first week of university was hectic when it came to socialising: "It's an amazing opportunity for hundreds of student to meet at a jamboree of parties," Adoboli said.

    "By the end of the week many of the first relationships will have been established and most of them will have ended."

    Before university, from 1992 to 1998, he attended a Quaker academy in West Yorkshire, the Ackworth school, of which he is listed as part of the alumni network. The school was founded in 1779 near Pontefract and offers day and boarding options to students.

    Hughes went to Warwick University, joining UBS as a trainee in 2005, according to the FSA register. He is a popular figure among the UBS’s London investment banking teams, according to people familiar with the matter.

    Adoboli and Hughes were unreachable for comment this morning and UBS declined to comment.

    Source: http://www.efinancialnews.com/story/...mostemailed-TT

  7. #7

    Default

    Adoboli, of Ghanaian decent, joined UBS as a trainee in March 2006, according to the FSA Register.
    Is he a Ghanaian or claiming to be a Ghanaian?
    Stop Judging me by YOUR standards and way of life....MINE is different




  8. #8

    Default

    Quote Originally Posted by CuTiEbABy View Post
    Is he a Ghanaian or claiming to be a Ghanaian?
    I would have so loved to find that out too.
    I couldn't get any verification on that .
    His LinkedIn and Facebook profiles appear to have been taken down.

  9. #9
    Godfather Fashion Yaa's Avatar
    Join Date
    Oct 2010
    Location
    City of Angels, Cali. USA
    Posts
    1,634

    Default

    Quote Originally Posted by CuTiEbABy View Post
    hahahhaaa Yaa are you concerned about what the money was used for or you just want to know if its stashed in Ghana somewhere...
    gotta admit i just wanna know how his peoples was living....i mean two billion can last at least five generations in Gh......is the money retrivable if it is indeed spread amongst his family<<<<<<<<<my rumour mill
    Last edited by Fashion Yaa; 15th September 2011 at 04:56 PM.


    all go to the same place ;all come from dust and to the dust all return. who knows if the human spirit rises upward and if the spirit of the animal goes down into the earth?
    ecclesiastes 3:20-21 :-x

  10. #10
    Godfather Fashion Yaa's Avatar
    Join Date
    Oct 2010
    Location
    City of Angels, Cali. USA
    Posts
    1,634

    Default

    Quote Originally Posted by CuTiEbABy View Post
    Is he a Ghanaian or claiming to be a Ghanaian?
    hm the more i think about it he had help seciring this Ghana name.....Ghanaweb is not reporting on him so i dount he is Gh blood hehehe Gweb is my Gossip on Diasporans


    all go to the same place ;all come from dust and to the dust all return. who knows if the human spirit rises upward and if the spirit of the animal goes down into the earth?
    ecclesiastes 3:20-21 :-x

  11. #11
    Super Moderator Pope Bitterz D'Alomo's Avatar
    Join Date
    Jul 2010
    Location
    Asamankese,Japan
    Posts
    7,539

    Default


    Adoboli was described as 'very popular' with colleagues (Pic: Facebook)

    An acquaintance described the former University of Nottingham student as a "nice, open guy with lots of friends, very popular with his colleagues and personal friends".
    She told Sky News Online: "I would have thought many of his colleagues and friends are very shocked at the news."
    A former landlord said he was "a very nice guy".
    Philip Octave, who rented a flat in Shoreditch, east London, to Adoboli for £1,000-a-week until he moved out four months ago, said: "I haven't got a bad word to say about him.Adoboli, whose parents are from Ghana, worked in the European equity trading division of the group and was based in London. He has worked at UBS for at least five years.
    Beware lest you lose the substance by grasping at the shadow. ~Aesop

    Ignorance can be educated,drunkenness sobered,craziness medicated but there is no cure for STUPIDITY


  12. #12

    Default

    Quote Originally Posted by Fashion Yaa View Post
    hm the more i think about it he had help seciring this Ghana name.....Ghanaweb is not reporting on him so i dount he is Gh blood hehehe Gweb is my Gossip on Diasporans
    hahhaaa sis I see...you get all your scoop from there....lol
    Stop Judging me by YOUR standards and way of life....MINE is different




  13. #13
    Super Moderator Pope Bitterz D'Alomo's Avatar
    Join Date
    Jul 2010
    Location
    Asamankese,Japan
    Posts
    7,539

    Default

    Trader charged after $2B loss for UBS
    Police charged a bank trader with fraud Friday, a day after he was arrested in connection with the discovery of an estimated $2 billion worth of unauthorized deals at Swiss banking giant UBS.
    City of London Police said Kwaku Adoboli would appear in court later Friday on charges of fraud by abuse of position and false accounting.
    The 31-year-old was arrested in an early morning operation in London's banking district hours before the loss was announced on Thursday, police said. His first name has been spelled elsewhere as Kweku.
    The Financial Services Authority, the Serious Fraud Office and Crown Prosecution Service are also involved in investigating the case, the City of London Police statement said.
    The bank declined to comment on the arrest. Shares in UBS rose slightly in early trading in Europe Friday after falling around 10% the day before.
    The bank is large enough to take a $2 billion hit, experts said, but the size of the loss it reported is almost unprecedented.
    Credit rating agency Moody's has said it is looking at UBS for a possible downgrade.

    Its review of UBS will focus on "ongoing weaknesses in the group's risk management and controls" as revealed by the reported loss, Moody's said in a statement.
    Moody's downgraded two French banks earlier this week amid questions over their exposure to debt.
    News of the alleged rogue trader came amid pronounced economic anxiety in Europe. Markets there have been in turmoil in recent weeks as concern has mounted that Greece might default on its huge debt, sending shock waves through the 17-nation eurozone and further afield.
    U.S. Treasury Secretary Timothy Geithner is attending a meeting of Europe's Economic and Financial Affairs Council in Wroclaw, Poland, on Friday, at which questions around Greek debt and financial stability in the eurozone are being discussed.
    Finance ministers for the European Union member states, central bank presidents and representatives of other major financial bodies are also present. The conference comes ahead of G20 and IMF meetings later this month.
    On Thursday -- even as news was circulating of the incident at UBS -- came word that the Federal Reserve and four other powerful central banks announced they were throwing a lifeline to Europe's struggling banks.
    The European Central Bank, along with the Fed, the Bank of England, the Bank of Japan and the Swiss National Bank, said three U.S. dollar auctions would be held by the end of the year to help out European banks that need the currency to fund loans and repay debt.
    European banks have seen U.S. dollars flow out as U.S. financial institutions and money market accounts scale back exposure to European banks, amid fears over those institutions' exposure to debt held by Greece and other European nations.
    Lex van Dam, a former trader who is now a partner at Hampstead Capital in London, said a bank's risk management division is supposed to examine a trader's activities.
    UBS is not likely to collapse, but the scandal could prompt the bank to split its investment bank into a separate company, he added.
    UBS said no client positions were affected by the loss, which is still being investigated.
    But the "unauthorized trading by a trader in its investment bank" could cause UBS to post a loss in the third quarter of this year, it said.
    The loss would potentially be among the largest costs ever to a bank in unauthorized trading.
    Rogue trader Jerome Kerviel cost his French bank, Societe Generale, almost $6 billion, and was sentenced to three years in prison last year.
    Yasuo Hamanaka cost Sumitomo Corporation $2.6 billion in the global copper market, and was sent to prison for eight years over fraud and forgery in 1997.
    Nick Leeson, the subject of the Ewan McGregor movie "Rogue Trader," lost about $1.3 billion for his bank, Barings, in 1995, forcing it to close.
    UBS made a pre-tax profit of about $1.9 billion in the second quarter of this year, it announced in July, down from about $2.5 billion the quarter before that.

    CNN
    Beware lest you lose the substance by grasping at the shadow. ~Aesop

    Ignorance can be educated,drunkenness sobered,craziness medicated but there is no cure for STUPIDITY


  14. #14

    Default

    Quote Originally Posted by Pope Bitterz D'Alomo View Post

    Adoboli was described as 'very popular' with colleagues (Pic: Facebook)

    An acquaintance described the former University of Nottingham student as a "nice, open guy with lots of friends, very popular with his colleagues and personal friends".
    She told Sky News Online: "I would have thought many of his colleagues and friends are very shocked at the news."
    A former landlord said he was "a very nice guy".
    Philip Octave, who rented a flat in Shoreditch, east London, to Adoboli for £1,000-a-week until he moved out four months ago, said: "I haven't got a bad word to say about him.Adoboli, whose parents are from Ghana, worked in the European equity trading division of the group and was based in London. He has worked at UBS for at least five years.
    Massa... I salute... You get filla... Where did you pull this one up from?... Did you get confirmation on whether he holds Ghanaian nationality or not?...

    Quote Originally Posted by Pope Bitterz D'Alomo View Post

    On Thursday -- even as news was circulating of the incident at UBS -- came word that the Federal Reserve and four other powerful central banks announced they were throwing a lifeline to Europe's struggling banks.
    The European Central Bank, along with the Fed, the Bank of England, the Bank of Japan and the Swiss National Bank, said three U.S. dollar auctions would be held by the end of the year to help out European banks that need the currency to fund loans and repay debt.
    CNN
    This is part I never seem to be able to wrap my head around...
    Why would you want to continue to prop-up and sink money into banks that are failing?
    Common sense would tell you to let them sink and let new, stronger and better banks with better financial systems and controls emerge.
    This will bring an total overhaul to the system...
    Yes... Investors will loose money but in any recession this is always the case and the world always come out a better place because of it.
    If anyone understand the economics of it, please help us understand...
    Because to my mind it's just utter nonsense... SMH.

  15. #15

    Default From Ghana to the City: the rise of a trader who had it all

    From Ghana to the City: the rise of a trader who had it all
    From his roots in the Ghanaian industrial port of Tema to a £1,000-a-week loft apartment in the City of London, Kweku Adoboli was the embodiment of global social mobility as his career went from strength to strength.

    As a trader at the Swiss investment bank UBS, the 31 year-old was earning a six-figure salary and spent his spare time travelling the world, building up his collection of Argentine boutique wines.

    But his incredible rise came to an abrupt halt at 3.30am yesterday when he was arrested by detectives who suspect him of carrying out the largest single fraud by a London-based trader.

    Mr Adoboli stands accused of covering up a loss of £1.3 billion, dwarfing the £827 million lost by Nick Leeson when he brought down Barings Bank in 1995.

    Until now, Mr Adoboli’s life had appeared to be one long success story, starting in Tema, near the Ghanaian capital Accra, where thousands survive on a minimum wage of £1.28 per day.

    As the son of a Ghanaian United Nations worker, Mr Adoboli was born into a life of privilege, travelling extensively as a child and spending time in Israel, Syria and Iraq, where he is understood to have attended international schools.

    His journey towards the City began when he was sent to boarding school in England, making such an impression at the £19,635-per-year Ackworth School in Pontefract, West Yorks, that he was made deputy head boy. Former classmates described him as “fun-loving” and “hard-working” and recalled him being a skilful hockey player.

    Kathryn Bell, the head teacher at the Quaker school, said he had been “an able student who made a very positive contribution to the school community” before he left in 1998.

    From there he went on to study for a BSc in Computing and Business Management at Nottingham University, where in 2000 he was elected as Communications Officer for the Students’ Union, and also took charge of coordinating Freshers’ Week.

    “He was an absolute whizz with computers,” said one contemporary. “He was very well-known around the university because he was very sociable, and he told us his father was a diplomat who worked at the United Nations.”

    Mr Adoboli’s computing skills earned him a graduate job at UBS, where he started in a back office before being transferred to a trading desk.

    “People were a little surprised when he turned up on the trading desk because he didn’t have a trading background,” said one former colleague. Nevertheless, after starting his trading career in 2006, he proved sufficiently adept to be moved on to the Delta One trading desk, coincidentally the type of operation on which Jérôme Kerviel, the Société Générale rogue trader, also worked.

    Outwardly, Mr Adoboli seemed to be thriving. Until four months ago, he lived in a 3,000 sq ft open-plan apartment in the City, paying £1,000 per week rent.

    Philip Octave, his then landlord, said: “He was a very nice guy. He was very polite. He would speak to anyone. He had a girlfriend who was a nurse, and dressed very smartly. I can’t believe what’s happening. I can’t believe it is him.”

    Mr Octave said the apartment, with limestone floors and whitewashed walls, was big enough to make a 10-bedroom flat, and compared it to an art gallery.

    He said his former tenant used to talk about his African background and made regular trips back to Ghana to see his parents and extended family.

    Mr Adoboli had recently read a book called The Wolf of Wall Street, by former trader Jordan Belfort, who earned tens of millions before being imprisoned for defrauding investors of $200 million in the 1990s.

    William Pitt, 39, a neighbour of Mr Adoboli and chief executive of a venture capital fund, said: “I knew he worked for UBS specialising in currencies.

    “We had a chat recently about how tough the markets were and he said it was a bloody s--- fight, and we both agreed how tough it was at the moment.

    “I would see him a couple of nights a week. He was coming, I was going, and vice versa.”

    “We didn’t talk about money, it is an unspoken rule that you don’t speak about figures so I wouldn’t ask him or expect him to tell me, you don’t really unless you are really close or in the same firm.

    He said Mr Adoboli had lent him his copy of The Wolf of Wall Street and “he said it was a great read”.

    Mr Pitt, who is from Melbourne, said his neighbour would often bring “pretty girls” back to the apartment.

    “He had lots of attractive girls coming by. He lived alone. He had friends around all the time. I know a pretty girl when I see one and he had pretty girls over all the time.

    “I have heard talk about a girlfriend but I never saw a girlfriend. I didn’t see his girlfriend and he didn’t mention one. No one else lived there.”

    “He was a young, successful guy, moving on up, having fun and making me jealous. He was a really relaxed, happy guy.”

    Another former neighbour said Mr Adoboli was a party animal who would hold all-night raves. The neighbour said the 31-year-old would host huge parties at the Spitalfields flat about once a month.

    He said: “I would complain about his music. I would sometimes scream out in the middle of the night turn down your ------- music. He had the proper set up, he would get DJs for his parties to play house music — they were really extravagant affairs.”

    “There would be 50-100 people with some even spilling out on to the street. I remember there was one party which went on right through to 10am the following morning. But he did seem nice, once when I complained about the music he sent me back with a bottle of champagne to apologise.”

    In his entry on the social networking website Facebook, Mr Adoboli lists his interests as travelling, mountain biking and football and wrote about his interest in Argentinian wine.

    But at some point over the past year, it is alleged, things started to go wrong at Mr Adoboli’s trading desk. It remains unclear by exactly what means he is alleged to have lost £1.3 billion.

    One theory is that the bank’s losses were related to the devaluation of the Swiss Franc on Sep 6.

    If the bank, or one of its employees, was trading in foreign currency the sudden devaluation could have had a disastrous impact on any trading that relied on a higher valuation.

    In recent months Mr Adoboli had been working exceptionally long hours, according to neighbours at the apartment complex in Whitechapel, east London, to which he recently moved.

    One resident said: “We never saw him as he was always working at all hours of the night.”

    The first sign of trouble came when Mr Adoboli updated his Facebook page to say: “I need a miracle.”

    None of his colleagues, however, had an inkling that he was about to be arrested for what is potentially the City’s fraud of the century.

    Source: http://www.telegraph.co.uk/finance/n...ad-it-all.html

  16. #16
    Godfather Fashion Yaa's Avatar
    Join Date
    Oct 2010
    Location
    City of Angels, Cali. USA
    Posts
    1,634

    Default

    Hm im not sure that he had all that money i mean he missed two momths rent and still has his family living in Tema.....ive learnt the type of trading he does is gambling so it could very well be that the money is lost to a more lucky investor just like doing lotto.

    This is the stage that he will learn who his true friends are....'white collar crime'......i actually met a elderly Ghanaman here in Cali who went to Fed Pen for such a crime back in the late 70's to 80's he came out deciding not to trust any Ghanaian n chooses to only deal with Mexicans ......his wife is Senegales


    all go to the same place ;all come from dust and to the dust all return. who knows if the human spirit rises upward and if the spirit of the animal goes down into the earth?
    ecclesiastes 3:20-21 :-x

  17. #17

    Default

    Quote Originally Posted by Fashion Yaa View Post
    Hm im not sure that he had all that money i mean he missed two momths rent and still has his family living in Tema.....ive learnt the type of trading he does is gambling so it could very well be that the money is lost to a more lucky investor just like doing lotto.
    You are right, Yaa.
    He probably did not stash the fund away but just lost it in trading.


    UBS loss 'came from lots of small trades over months'
    Kweku Adoboli carried out vast numbers of small transactions over many months, as he accumulated investments that would ultimately lead to $2bn or £1.3bn in losses for UBS. According to a banker with a close knowledge of Mr Adoboli's alleged activities, one reason why UBS failed to identify the unauthorised deals till Wednesday was that Mr Adoboli had a close knowledge of UBS's back office or administration procedures: he previously worked in the back office before becoming a trader. "His knowledge of the back office apparently helped him to disguise what he was doing," the banker said. He added: "naturally there are concerns about why it took UBS so long to identify what now looks like a long history of rogue trades. But when a trader sets out to systematically mislead his employer, as seems to have happened in this case, the best monitoring systems in the world won't pick up what happened."

    http://www.bbc.co.uk/news/business-14944242


  18. #18
    Super Moderator Pope Bitterz D'Alomo's Avatar
    Join Date
    Jul 2010
    Location
    Asamankese,Japan
    Posts
    7,539

    Default

    Quote Originally Posted by Quaiqu Ananse View Post
    Massa... I salute... You get filla... Where did you pull this one up from?... Did you get confirmation on whether he holds Ghanaian nationality or not?...



    This is part I never seem to be able to wrap my head around...
    Why would you want to continue to prop-up and sink money into banks that are failing?
    Common sense would tell you to let them sink and let new, stronger and better banks with better financial systems and controls emerge.
    This will bring an total overhaul to the system...
    Yes... Investors will loose money but in any recession this is always the case and the world always come out a better place because of it.
    If anyone understand the economics of it, please help us understand...
    Because to my mind it's just utter nonsense... SMH.
    A buddy e-mailed me that piece... apparently he was born in Ghana. He probably scored huge profit a couple of times and thought he could up his ante then poof, his luck run out.
    Beware lest you lose the substance by grasping at the shadow. ~Aesop

    Ignorance can be educated,drunkenness sobered,craziness medicated but there is no cure for STUPIDITY


  19. #19
    Super Moderator Pope Bitterz D'Alomo's Avatar
    Join Date
    Jul 2010
    Location
    Asamankese,Japan
    Posts
    7,539

    Default

    Quote Originally Posted by Fashion Yaa View Post
    Hm im not sure that he had all that money i mean he missed two momths rent and still has his family living in Tema.....ive learnt the type of trading he does is gambling so it could very well be that the money is lost to a more lucky investor just like doing lotto.

    This is the stage that he will learn who his true friends are....'white collar crime'......i actually met a elderly Ghanaman here in Cali who went to Fed Pen for such a crime back in the late 70's to 80's he came out

    deciding not to trust any Ghanaian n chooses to only deal with Mexicans ......his wife is Senegales
    Good luck to him lmao
    Beware lest you lose the substance by grasping at the shadow. ~Aesop

    Ignorance can be educated,drunkenness sobered,craziness medicated but there is no cure for STUPIDITY


  20. #20
    Super Moderator Pope Bitterz D'Alomo's Avatar
    Join Date
    Jul 2010
    Location
    Asamankese,Japan
    Posts
    7,539

    Default

    Beware lest you lose the substance by grasping at the shadow. ~Aesop

    Ignorance can be educated,drunkenness sobered,craziness medicated but there is no cure for STUPIDITY


  21. #21
    Godfather Fashion Yaa's Avatar
    Join Date
    Oct 2010
    Location
    City of Angels, Cali. USA
    Posts
    1,634

    Default

    I can only asume his smiles mean he is about to roll some heads.....6k ppl in the UK are about to lose work cuz of a common practice hmm what kina byluck be dis! Or maybe he is smiling cuz he has mentally prepared himself for jail or deportation


    all go to the same place ;all come from dust and to the dust all return. who knows if the human spirit rises upward and if the spirit of the animal goes down into the earth?
    ecclesiastes 3:20-21 :-x

  22. #22

    Default

    Quote Originally Posted by Fashion Yaa View Post
    I can only asume his smiles mean he is about to roll some heads.....6k ppl in the UK are about to lose work cuz of a common practice hmm what kina byluck be dis! Or maybe he is smiling cuz he has mentally prepared himself for jail or deportation
    Funny thing is, I still don't blame him or all the other rogue traders that are out there... and trust me there are still lots of them out there... These financial institutions encourage them rewarding them when they make profits and covering up for them when they make losses... Occasionally they'll just make scape goats of a few of them... I blame the system which allows them to do this over and over again... and then gives them back tax payers money to do it all over again.

  23. #23

    Default 'Rogue Trader' My Ass - FREE KWEKU NOW!!!

    The $2 Billion UBS Incident: 'Rogue Trader' My Ass

    The news that a "rogue trader" (I hate that term – more on that in a moment) has soaked the Swiss banking giant UBS for $2 billion has rocked the international financial community and threatened to drive a stake through any chance Europe had of averting economic disaster. There is much hand-wringing in the financial press today as the UBS incident has reminded the whole world that all of the banks were almost certainly lying their asses off over the last three years, when they all pledged to pull back from risky prop trading. Here’s how the WSJ put it:

    The Swiss banking giant has been struggling to rebuild trust after running up vast losses in the original financial crisis. Under Chief Executive Oswald Grubel, the bank claimed to have put in place new risk management practices, pulled back from proprietary trading and focused on a low-risk client-driven model.

    All the troubled banks, remember, made similar promises in the wake of the financial crisis. In fact, some of them used the exact same language. Some will recall Goldman’s executive summary from earlier this year in which the bank pledged to respond to a "challenging period" in its history by making changes.

    "We reviewed the governance, standards and practices of certain of our firmwide operating committees," the bank wrote, "to ensure their focus on client service, business standards and practices and reputational risk management."

    But the reality is, the brains of investment bankers by nature are not wired for "client-based" thinking. This is the reason why the Glass-Steagall Act, which kept investment banks and commercial banks separate, was originally passed back in 1933: it just defies common sense to have professional gamblers in charge of stewarding commercial bank accounts.

    Investment bankers do not see it as their jobs to tend to the dreary business of making sure Ma and Pa Main Street get their $8.03 in savings account interest every month. Nothing about traditional commercial banking – historically, the dullest of businesses, taking customer deposits and making conservative investments with them in search of a percentage point of profit here and there – turns them on.

    In fact, investment bankers by nature have huge appetites for risk, and most of them take pride in being able to sleep at night even when their bets are going the wrong way. If you’re not a person who can doze through a two-hour foot massage while your client (which might be your own bank) is losing ten thousand dollars a minute on some exotic trade you’ve cooked up, then you won’t make it on today’s Wall Street.

    Nonetheless, thanks to the Gramm-Leach-Bliley Act passed in 1998 with the help of Bob Rubin, Larry Summers, Bill Clinton, Alan Greenspan, Phil Gramm and a host of other short-sighted politicians, we now have a situation where trillions in federally-insured commercial bank deposits have been wedded at the end of a shotgun to exactly such career investment bankers from places like Salomon Brothers (now part of Citi), Merrill Lynch (Bank of America), Bear Stearns (Chase), and so on.

    These marriages have been a disaster. The influx of i-banking types into the once-boring worlds of commercial bank accounts, home mortgages, and consumer credit has helped turn every part of the financial universe into a casino. That’s why I can’t stand the term "rogue trader," which is always tossed out there when some investment-banker ------- loses a billion dollars betting with someone else’s money.

    They’re not "rogue" for the simple reason that making insanely irresponsible decisions with other peoples’ money is exactly the job description of a lot of people on Wall Street. Hell, they don’t call these guys "rogue traders" when they make a billion dollars gambling.

    The only thing that differentiates a "rogue" trader like Barings villain Nick Leeson from a Lloyd Blankfein, ---- Fuld, John Thain, or someone like AIG’s Joe Cassano, is that those other guys are more senior and their lunatic, catastrophic decisions were authorized (and yes, I know that Cassano wasn’t an investment banker, technically – but he was in financial services).

    In the financial press you're called a "rogue trader" if you're some overperspired 28 year-old newbie who bypasses internal audits and quality control to make a disastrous trade that could sink the company. But if you're a well-groomed 60 year-old CEO who uses his authority to ignore quality control and internal audits in order to make disastrous trades that could sink the company, you get a bailout, a bonus, and heroic treatment in an Andrew Ross Sorkin book.

    In other words, "rogue traders" are treated like bad accidents and condemned everywhere from the front pages to Ewan McGregor films. But rogue companies are protected at every level of the regulatory structure and continually empowered by dergulatory legislation giving them access to our bank accounts.

    There is a movement in the UK for a thing called “ringfencing” that would separate investment bankers from commercial bankers. Some people think this UBS incident will aid that movement, even though UBS can apparently absorb the loss without necessitating a bailout or endangering client accounts.

    The U.S. missed its own chance for ringfencing when a proposal for a full repeal of Gramm-Leach-Bliley was routed during the Dodd-Frank negotiations.

    That means we’re probably stuck here in the states with companies like Bank of America, JP Morgan Chase and Citigroup, giant commercial banks in charge of stewarding trillions in client bank accounts and consumer credit accounts who also behave like turbocharged gamblers via their investment banking arms.

    Sooner or later, this is going to blow up in our faces, and it won't be one lower-level guy with a $2 billion loss we'll be swallowing. It'll be the CEO of another rogue firm like Lehman Brothers, and it'll cost us trillions, not billions.


    Source: http://www.rollingstone.com/politics...915?print=true

  24. #24
    Super Moderator Pope Bitterz D'Alomo's Avatar
    Join Date
    Jul 2010
    Location
    Asamankese,Japan
    Posts
    7,539

    Default

    Why there hasn't been measures in place to at least over see
    the inside activities of these financial institutions up till now still beats me. Like Gordon Gekko said in WALL STREET
    Ever wonder why fund managers can't beat the S&P 500? 'Cause they're sheep, and sheep get slaughtered.
    Beware lest you lose the substance by grasping at the shadow. ~Aesop

    Ignorance can be educated,drunkenness sobered,craziness medicated but there is no cure for STUPIDITY


  25. #25
    Super Moderator Pope Bitterz D'Alomo's Avatar
    Join Date
    Jul 2010
    Location
    Asamankese,Japan
    Posts
    7,539

    Default

    The U.S. missed its own chance for ringfencing when a proposal for a full repeal of Gramm-Leach-Bliley was routed during the Dodd-Frank negotiations.

    That means we’re probably stuck here in the states with companies like Bank of America, JP Morgan Chase and Citigroup, giant commercial banks in charge of stewarding trillions in client bank accounts and consumer credit accounts who also behave like turbocharged gamblers via their investment banking arms.

    Sooner or later, this is going to blow up in our faces, and it won't be one lower-level guy with a $2 billion loss we'll be swallowing. It'll be the CEO of another rogue firm like Lehman Brothers, and it'll cost us trillions, not billions.
    So true. this will be worse than an oil spill.
    Beware lest you lose the substance by grasping at the shadow. ~Aesop

    Ignorance can be educated,drunkenness sobered,craziness medicated but there is no cure for STUPIDITY


+ Reply to Thread

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Bookmarks

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may post replies
  • You may not post attachments
  • You may not edit your posts
  •