UBS: Systems worked, but follow through failed

The Wall Street Journal and others have reported that UBS executives insist that internal risk controls did indeed detect the rogue trader that has cost the company more than $2 billion and has resulting in a management shakeup that has claimed the CEO as well as the heads of the Swiss bank’s global equities business.

However, the company failed to properly follow up on signs something was amiss, writes UBS interim CEO Sergio Ermotti.

"Our internal investigation indicates that risk and operational systems did detect unauthorized or unexplained activity but this was not sufficiently investigated nor was appropriate action taken to ensure existing controls were enforced," he writes.

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UBS: Our risk systems did detect £1.3bn rogue trader

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