UBS ups rogue trader losses to $2.3bn

Swiss banking giant UBS has raised its estimate of the losses allegedly caused by rogue trader Kweku Adoboli to $2.3bn (£1.5bn).

The bank raised its forecast - which was previously $2bn - while revealing more details of the suspected fraud. UBS said the fraud came to light after the bank began making enquiries, and it is now understood it was carried out using a series of fake trades. According to the Financial Times, Adoboli covered up huge loss-making positions by placing a series of fake trades alongside them. The technique is the same one used by Jerome Kerviel who lost French bank Societe Generale €4.9bn back in 2008. UBS said the loss-making positions were built up in index futures on the S&P 500, G...