Kweku Adaboli in relaxed mode

I’m glad to see that some other sites are beginning to share my doubts about what’s really going on inside UBS. The FT had this to say after lunch today BST, once the alleged rogue trader Kweku Adoboli had been identified as the accused:

‘First, hard questions need to be asked about UBS’s internal risk controls. It is hard to believe the Swiss bank’s view that it cannot identify the area in which the rogue trades were made, or when more information might become available – everything has an electronic audit trail.’

It does indeed, although OTC trades of the sort Adoboli was engaged in are that bit more difficult to spot. However, I’m still puzzled as to why the bank’s CDS position recovered within a staggeringly short space of time this morning. While being the first to admit that this is a sector wherein I’m out of my depth, the fraud possibilities within such a situation are obvious. That is, the obvious didn’t happen: and when the obvious doesn’t happen, there’s always money to be made by those in the know….by fair means or foul.

If you’ve been to Mr Adoboli’s Facebook page, you’ll find it plastered with some mysterious messages of sympathy and support, for example, “sure hope your family is in control of this development”. Educated after school at the University of Nottingham, Adoboli is listed there at the time as a prominent student involved in campus societies and staff-student relations. He seems to be a popular bloke, who posted the other night, “We need a miracle now”.

His immediate boss John Hughes has resigned, but as yet we don’t know why.

The Slog’s nose is twitching about this one. One can’t help feeling there is more to this than a lone assassin.