In November 2012, Kweku Adoboli was convicted of two counts of fraud and sentenced to 7 years in prison. He remains the most notorious rogue trader in British banking history, having lost his employers at the time, Swiss bank UBS, £1.4bn (more than other notorious trader Nick Leeson) through setting up covert internal slush funds and documenting sham deals to hide the amount of risk he was taking on behalf of the bank. The unauthorised trades he took part in began in 2008 and continued until 2011. UBS was later fined £29.7m by the Financial Conduct Authority (FCA) for a failure to monitor Mr Adoboli’s actions.
Now released from prison, Mr Adoboli speaks at banking compliance conferences, commenting on the culture of investment banks, the platform that allowed him to commit his crimes. Speaking to the BBC, Mr Adoboli made the following points:
- The behaviour in banking has not changed since his conviction.
- Banking employees are encouraged to take risks because of the enormous amount of pressure they’re under to drive up profits.
- If investment banks continue to chase the same level of profitability as they have in the past, the only way to do so is to take more risks.
- Traders are pushed to make profits no matter what the consequences.
- The crimes he committed could happen again.
- There could be another financial crisis in the next 12-24 months.
Mr Adoboli also apologised unreservedly for his crimes and accepted that he had been dishonest. He now faces deportation to Ghana, the country of his birth, despite living in the UK since the age of 12.
With a number of bankers standing – and having stood trial – for both LIBOR and FOREX manipulation, berg continues to represent clients affected by a breakdown in banking standards and who may have suffered losses as a result. If you would like to discuss your claim with an expert in this field, get in touch with our specialist Dispute Resolution team on 0161 833 9211.