Trader accused of losing UBS $2.3 billion pleads not guilty

Kweku Adoboli arrives at the City of London Magistrates Court on September 22, 2011.

Story highlights

  • Kwaku Adoboli pleads not guilty and is scheduled for trial starting September 3
  • He is "sorry beyond words" for the UBS loss, his lawyer said last year
  • The $2.3 billion loss is potentially among the largest unauthorized trading losses ever
  • The UBS investment banking division posted a loss after the incident

A trader accused of fraud over a $2.3 billion loss in unauthorized trading reported by Swiss banking giant UBS pleaded not guilty in a London court Monday.

The trader, Kwaku Adoboli, was ordered held in custody, and his trial was scheduled to begin September 3.

Adoboli faces a charge of fraud by abuse of position between January and September 2011, and he also faces two counts of false accounting.

His lawyer said he was "sorry beyond words" in a previous court appearance in September.

The loss would potentially be among the largest ever to a bank in unauthorized trading.

The trader was charged in September, a day after he was arrested in connection with the discovery of unauthorized deals at UBS.

Britain's Financial Services Authority, the Serious Fraud Office and the Crown Prosecution Service are also involved in investigating the case.

UBS said no client positions were affected by its $2.3 billion loss.

UBS posted a profit in the third quarter despite "the unauthorized trading incident," it said in its quarterly report, but its investment banking division recorded a loss of 650 million Swiss francs ($708 million).

UBS chief executive Oswald J. Gruebel resigned two days after Adoboli was charged, though bank chairman Kaspar Villiger said in a statement that the bank regretted Gruebel's decision.

Gruebel "feels that it is his duty to assume responsibility for the recent unauthorized trading incident. It is testimony to his uncompromising principles and integrity," Villiger said.

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