Man arrested in London over UBS trading

A 31-YEAR-old man has been arrested in London in connection with allegations of rogue trading which has cost Swiss banking group UBS an estimated $1.95 billion, sources say.

The Swiss banking group revealed today that unauthorised trading had taken place in its investment banking division.

It did not further details about the activities, which could lead to it reporting a loss for the third quarter of its financial year.

UBS said no customer accounts were affected.

The Zurich-based firm said: “UBS has discovered a loss due to unauthorised trading by a trader in its investment bank.

“The matter is still being investigated, but UBS’s current estimate of the loss on the trades is in the range of two billion US dollars.

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

Shares in the bank were down by more than seven per cent this morning.

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