Ex-UBS trader refused bail as bank probe deepens

Fri Feb 3, 2012 7:28am EST
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By Sarah White and Peter Griffiths

LONDON (Reuters) - Former UBS AG trader Kweku Adoboli, who is accused of unauthorized deals that cost the Swiss bank $2.3 billion, was refused bail by a London court on Friday less than an hour after regulators stepped up their probe into the scandal.

The Financial Services Authority (FSA) and the Swiss Financial Market Supervisory Authority (FINMA) said they were launching enforcement investigations, which depending on their findings can be a prelude to actions such as fines or court proceedings.

The Swiss bank is conducting its own probe and has blamed the losses on an unauthorized trading incident.

Adoboli, 31, the British-educated son of a retired United Nations official from Ghana, was arrested straight after the losses were unveiled last September. He pleaded not guilty earlier this week to charges related to the scandal.

He will remain in custody in Wandsworth prison in south London until his trial, which is set for September 3.

It was the first time lawyers for Adoboli, a former director, had applied for his release from custody since he was detained last year.

"These are serious allegations backed up with cogent evidence," said Judge Alistair McCreath at London's Southwark Crown Court after refusing his application.

Adoboli was not in court for the hearing, but his friends, family and his partner were there.   Continued...

<p>UBS trader Kweku Adoboli leaves City of London magistrates' court in the City of London October 20, 2011. REUTERS/Andrew Winning</p>