UBS bank trader is charged in Britain in $2B loss

LONDON

Bank trader is charged in $2B loss

The trader who rocked Swiss banking titan UBS by allegedly gambling away $2 billion was charged Friday with fraud and false accounting dating back to 2008, as his bank came under a storm of criticism for failing to catch the massive loss. Kweku Adoboli, 31, wiped his eyes and sniffled during a brief court hearing, but did not enter a plea. He will be held until another appearance on Thursday.

Ratings agency Moody's placed UBS' credit grade on review for possible downgrade, citing worries over the future of its London-based investment unit. Andreas Venditti, an analyst at Zuercher Kantonalbank, said "confidence will remain impaired" until UBS explains how such unauthorized trading could take place, while some leading Swiss politicians accused the bank of "arrogance and greed."

LONDON

Police seek sources of hacking story

The Guardian newspaper said Friday that London's Metropolitan Police was seeking a court order that would force the paper to unveil source material for a handful of stories on the phone-hacking scandal, including a July 4 article that revealed the now-defunct News of the World tabloid hacked into the voice-mail messages of missing British schoolgirl, Milly Dowler, who was later found murdered. Police confirmed that they were seeking evidence connected to potential breaches of Britain's Official Secrets Act, which criminalizes the disclosure of state secrets and, in some cases, of police information. Guardian editor Alan Rusbridger promised to "resist this extraordinary demand to the utmost."

ST. JOHN'S, Newfoundland

Maria makes landfall in eastern Canada

Hurricane Maria made landfall in eastern Newfoundland as a Category 1 storm on Friday, but officials said the worst winds were offshore and there were no early reports of injuries or significant property damage. After making landfall, Maria was quickly downgraded to a tropical storm. Chris Fogarty, a meteorologist at the Canadian Hurricane Centre, said Newfoundland avoided the worst of the hurricane. Weather officials lifted the hurricane warning for southeastern Newfoundland. Many Newfoundlanders hunkered down at home in the Atlantic Canadian province, and schools were closed.

Elsewhere

Brazil car tax: A report in Brazil's Federal Register Friday said import duties on vehicles will rise by 30 percentage points, with some exemptions. The new rates range from 37 percent to 55 percent, depending on a variety of factors such as vehicle and engine types.

Separatist sentenced: Basque separatist leader Arnaldo Otegi, 53, was Friday sentenced to 10 years in prison by Spain's National Court on charges of belonging to the armed separatist group ETA.

Times wires

UBS bank trader is charged in Britain in $2B loss 09/16/11 [Last modified: Friday, September 16, 2011 11:37pm]

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