Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Adoboli affair rocks London's scandal-hit financial hub  Join our daily free Newsletter

MENAFN - AFP - 25/11/2012

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - AFP) The jailing of rogue UBS trader Kweku Adoboli, convicted of Britain's biggest ever fraud, is the latest damaging scandal to rock London's financial district and spark fresh concerns over its conduct.

Adoboli was jailed last week for seven years after gambling away 2.3 billion (1.8 billion euros) of the Swiss bank's money in a spectacular fall from grace that highlighted the City's risk culture, analysts said.

A jury in London found the Ghanaian-born banker, 32, guilty of two counts of fraud, though it cleared him of four charges of false accounting.

"Adoboli is very much a symbol" of the City, or London's financial quarter, independent banking analyst Ralph Silva told AFP. "He is an old school guy."

Silva noted that London-based traders had been willing to take greater risks than their counterparts across the Atlantic in the run-up to the financial crisis beginning in 2008.

"London was far more risky than anywhere else, they (traders) took bigger risks even than the US because New York took risks only in America, (but) London took risks in the world," he said.

Adoboli admitted losing the enormous sums but denied any wrongdoing. He claimed that senior UBS managers were fully aware of his activities and encouraged him to take risks and raise profits.

"There is a strong streak of the gambler in you," judge Brian Keith told Adoboli, as he sentenced him. "You were arrogant to think the bank's rules for traders did not apply to you."

Britain's coalition government is eager to crack down on so-called "casino" or high-risk banking that was partly blamed for the notorious global financial crisis, as traders pursued vast bonuses and excessive pay.

Finance minister George Osborne has urged lawmakers to support his plans for costly structural reform of the country's banks -- which include ringfencing investment and retail activities -- to avoid a repeat of the devastating crisis.

"I would be very wary of unpicking a consensus that has been arrived at" over reform of the nation's banks, Osborne told Britain's Parliamentary Commission on Banking Standards last week.

The Commission, a scrutiny panel set up by Osborne, is looking into banking standards and culture in the wake of scandals that include Libor rate-rigging, product mis-selling and money laundering.

Osborne's warning came as he appeared to back the creation of a potential professional standards body to oversee the behaviour of lenders like Barclays, HSBC and state-rescued pair Lloyds Banking Group and Royal Bank of Scotland.

Bank of England (BoE) governor Mervyn King meanwhile told the Commission that the government's ringfencing proposals will "certainly help" drive further improvements in the industry's culture.

Next year, the BoE will take over banking sector oversight from the Financial Services Authority (FSA) watchdog, as part of a major regulatory revamp.

This year the City -- also known as the Square Mile -- has been plagued by problems, with banks facing huge compensation bills for mis-selling cover on credit products -- or payment protection insurance (PPI).

British banks have ramped up the amount of cash they are setting aside to compensate clients who were mis-sold PPI to more than 10 billion (16 billion, 12.4 billion euros), significantly slashing their profits.

Meanwhile in June, the Libor (London Interbank Offered Rate) affair erupted when Barclays was fined 290 million by British and US regulators for attempted manipulation of interbank rates between 2005 and 2009.

The episode sparked top-level resignations, while other banks remain under investigation. The Libor system was found to be open to abuse, with some traders lying about borrowing costs to boost positions or make groups seem more secure.

The government subsequently launched plans to overhaul Libor and make it a criminal offence to manipulate the rate.

HSBC was meanwhile thrown into a separate crisis in July when a US Senate report found it had allowed affiliates in Mexico, Saudi Arabia and Bangladesh to move billions of dollars in suspect funds into the US without adequate controls.

The Asia-focussed lender has so far set aside 1.5 billion to cover potential fines and warned it could face criminal charges over the matter.

Elsewhere, emerging markets-focused lender Standard Chartered was recently plunged into crisis when a US regulator accused the bank of hiding 250 billion in transactions with Iran.

The Britain-based emerging markets lender -- which derives 90 percent of its profits across Africa, Asia and the Middle East -- denied the allegations but paid 340 million to settle the dispute.

In the latest blow to London's finance sector, US tech giant Hewlett-Packard last week reported a massive quarterly loss and blamed deliberate financial misstatements from British software firm Autonomy, which it bought last year.

However, the London office of audit firm Deloitte rejected claims by HP that it missed "accounting improprieties" at Autonomy ahead of the takeover.

And Autonomy founder Mike Lynch has "flatly rejected" the accusations, according to various media reports.

"Just when one thought things couldn't get any worse for the reputation of the City of London," said the Wall Street Journal in an opinion piece.

"Hewlett-Packard's allegations ... that Autonomy 'used accounting improprieties, misrepresentations and disclosure failures to inflate the underlying financial metrics of the company prior to its acquisition by HP' comes at the end of a terrible year for the UK's financial district."

 






  MENA News Headlines
Apr 24 2014Qatar- HH Sheikha Moza Meets Mayor of Kobe Visits RIKEN Research Institution ,Qatar News Agency
(MENAFN - Qatar News Agency) Kobe April 24 - Her Highness Sheikha Moza bint Nasser Chairperson of Qatar Foundation for Education Science and Community Development (QF) today held a meeting with the ...

Apr 24 2014Qatar- Sidra-BMC Event Boosts Biomedical Research Publishing ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - A symposium organised jointly by Sidra Medical Research Centre and BioMed Central (BMC) mulled trends in research and on open access publishing here ...

Apr 24 2014Qatar- Mannai Corp Q1 Net Profit up 73% to QR 150.1 Million ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Exchange listed Mannai Corporation (QE: MCCS) net profit is up 73% to QR 150.1 Million for the first quarter of fiscal year 2014 ending March 31 ...

Apr 24 2014Bahraini firms forecasted to grow 10 pct ,MENAFN
(MENAFN) In a report based on a study of over 650 companies across GCC, Kuwait Financial Centre (Markaz) forecasts a growth of the Bahraini companies' earnings by 10 percent in 2014, Gulf Daily News ...

Apr 24 2014Israeli Army Storms Deir Samit Village West of Hebron ,Qatar News Agency
(MENAFN - Qatar News Agency) bron April 24 - Israeli army forces stormed at dawn Thursday Deir Samit village southwest of Hebron city in the West Bank. The Israeli forces conducted raid and search ...

Apr 24 2014Qatar Airways to add more seats on Doha-Vienna route ,MENAFN
(MENAFN) Qatar Airways plans to offer more 1.700 seats on its Doha-Vienna route beginning from September 2014, according to Gulf News. The company aims to expand the growing passenger demand from ...

Apr 24 2014Qatar- QFC Authority Five-a-Side Football Tournament Kicks Off ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Financial Centre (QFC) Authority's first Five-a-side Football Tournament is displaying dribbling skills of executives from Doha's financial ...

Apr 24 2014Qatar Stock Exchange Down 0.05% ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - The Qatar Exchange ended in the red area when trading closed Thursday at 12954.93 points (0.05%) down 6.63 points from the previous closing of 12961.56 ...

Apr 24 2014Israeli Tanks Enter Gaza Border area ,Qatar News Agency
(MENAFN - Qatar News Agency) Gaza April 24 - Six Israeli military tanks on Thursday entered a border area in the southern Gaza Strip witnesses said. The tanks crossed into Gaza in an area called ...

Apr 24 2014Georgian Justice Minister Leaves Doha ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - HE Minister of Justice of Georgia Tia Tsulukiana left Doha on Thursday morning wrapping up a two-day official visit to the country. An agreement on ...

Apr 24 2014President Salva Kiir Relieves his Chief of the General Staff ,Qatar News Agency
(MENAFN - Qatar News Agency) Juba April 24 -South Sudanese President Salva Kiir relieved Chief of the General Staff of south sudan army James Hoth Mai. This came in a presidential decree aired ...

Apr 24 2014Dubai SME ties up with Taylor Wessing to raise awareness on Intellectual Property and fund-raising among SME100 firms ,MENAFN Press
(MENAFN Press) Dubai SME, the agency of the Department for Economic Development in Dubai mandated to develop the SME sector, have signed a memorandum of understanding (MoU) with the international law ...

Apr 24 2014Egyptian Premier Off to Chad ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egyptian Prime Minister Ibrahim Mehlib left cairo on Thursday for Chad the first leg of a three-day two-state trip that will also take him to Tanzania ...

Apr 24 2014Mannai Corporation net profit soars 73 percent in Q1 ,MENAFN
(MENAFN) Qatar's Mannai Corporation said that its net profit in the first quarter of this year increased significantly, the Peninsula Qatar reported. The group said that net profit in the period ...

Apr 24 2014Afghan Guard Shoots Dead 3 Foreigners in Hospital ,Qatar News Agency
(MENAFN - Qatar News Agency) Kabul April 24 - Three foreigners including a doctor were shot dead and their colleague wounded when a guard of a private Cure Hospital opened fire on them in the ...

Apr 24 2014Redefining large AOC launches 28€³ MVA monitors ,MENAFN Press
(MENAFN Press) Display specialist AOC launches its first two 28" (71.1 cm) monitors. The m2870Vhe and m2870Vq feature extra-large 16:9 MVA panels with Full HD resolution, wide viewing angles and high ...

Apr 24 2014Finance House Q1 Net Soars 38% to AED 35.51 Million ,MENAFN Press
(MENAFN Press) Finance House PJSC (FH), has kicked-off 2014 on an upbeat note by registering a consolidated net profit of AED 35.51 million for the first quarter of 2014, which is nearly 38% higher ...

Apr 24 2014Omani non-oil exports to enter African markets ,MENAFN
(MENAFN) A senior official at the Oman Chamber of Commerce and Industry (OCCI) said that the Sultanate is seeking expansion in new African markets, in a time it is looking forward to reduce its ...

Apr 24 2014Australian Federal Parliament Deputy Speaker Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Canberra April 24 - Australian Federal Parliament Deputy Speaker Bruce Scott met here Thursday with HE Qatar's Ambassador to Australia Yousef bin Ali Al ...

Apr 24 2014US Secretary of State Meets Egyptian Intelligence Chief ,Qatar News Agency
(MENAFN - Qatar News Agency) shington April 24 - US Secretary of State John Kerry has met with the Egyptian Intelligence Chief Major General Mohammed Ahmed Fareed al-Tohami who is currently ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help