UBS CFO Naratil says 550 fired after $2.3 billion trade loss

Similar Tactics

Earlier in the day, three UBS traders -- Bhavya Babel, Neesha Patel and Tom White -- testified they didn’t know about Adoboli’s umbrella and didn’t keep similar accounts for themselves. Another lawyer for Adoboli, Paul Garlick, said that Adoboli told each of them about it in the spring of last year and that they had similar tactics.

White, an executive director in the global synthetic equities division, testified that he had a method of reducing the amount of profit immediately reported on his trading book in order to set aside money for costs to pay the bank’s treasury department.

Garlick asked Patel, the head of European retail certificates business at UBS, whether she told Adoboli she was impressed by the surplus profit he’d amassed in his umbrella when he told her about it last year.

“I can’t comment on that,” she said today. “I can’t recall the conversation.”

The accounting firm KPMG LLP has conducted its own investigation at the request of the U.K. Financial Services Authority into the controls failures at UBS that allowed the trades to happen.

Bloomberg News

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