News Summary: UK fines UBS in rogue trader case

The Associated Press

BIGGEST-EVER BANK FRAUD: Britain's financial regulator fined UBS AG $47.6 million for failures which allowed a rogue trader to lose $2.3 billion. Kweku Adoboli was sentenced last week to seven years in prison after being convicted of two counts of fraud.

WEAKNESSES: The Financial Services Authority fined the Swiss-based bank after finding serious weaknesses in procedures, management systems and internal controls in the London branch of UBS, including failing to investigate substantial increases in profit reported by the Exchange Traded Funds Desk where Adoboli worked.

COOPERATION: The fine could have been 30 percent higher had UBS not cooperated. The bank disciplined employees involved in the case, including reclaiming bonuses and other deferred compensation.