Kevin Henry, Senior Vice President at Hiscox Special Risks and panelist for the 2016 PLUS Professional Risk Symposium session “Fraud & Extortion: Using Technological Means – Crime or Cyber?,” joined us in the Media Zone to discuss cyber extortion and the K&R market.
Police in London took Kweku Adoboli into custody on charges that he lost approximately $2 Billion in unauthorized deals. From the article:
Adoboli — a director of exchange traded funds and “Delta 1” working in the bank’s London office, according to his profile on networking site LinkedIn — was arrested on suspicion of fraud, sources told Reuters.
“I can confirm that an employee of the bank was arrested in London in connection with the statement,” a UBS spokesman said.
UBS said it might post a third-quarter loss after the rogue trades, a huge blow as it struggles to rebuild its credibility after years of crises.
The loss effectively cancels out the 2 billion-franc saving that the bank had hoped to make in a cost-cutting program announced last month in which it will axe 3,500 jobs.
It also threatens the future of UBS’s investment bank, which is being reviewed by chief executive Oswald Gruebel as part of a wide-ranging restructuring following heavy losses in the credit crisis and a damaging scandal over bankers helping rich U.S. clients dodge taxes.
You can read the full article and see accompanying video here on the Reuters website.
From the Insurance Journal – Bank of America and two former executives lost a bid on Friday to dismiss securities fraud claims alleging they misled investors about the bank’s 2008 acquisition of Merrill Lynch & Co. From the article:
U.S. District Court Judge P. Kevin Castel ruled that plaintiffs could continue to pursue claims against the bank, former chief executive Kenneth Lewis and former chief financial officer Joe Price for failing to disclose Merrill’s deteriorating financial condition in the fourth quarter of 2008. But Judge Castel dismissed claims that the defendants had failed to disclose the federal government’s financial support to BofA for facilitating the Merrill deal. He also dismissed claims on behalf of holders of various preferred shares, debt and call options for lack of standing.
You can read the full summary here on the Insurance Journal website.