‘Rogue trader’ trial: Jury starts second day of deliberations

10:47 15 November 2012

The jury in the trial of alleged rogue trader Kweku Adoboli has started a second day of deliberations. Picture: Lewis Whyld/PA Wire

The jury in the trial of alleged rogue trader Kweku Adoboli has started a second day of deliberations. Picture: Lewis Whyld/PA Wire

Jurors in the trial of a city trader accused of gambling away £1.4billion have started a second day of deliberations.

Kweku Adoboli, 32, from Whitechapel, is charged with fraud and false accounting over the losses to UBS, which wiped £2.8billion off the Swiss bank’s share value.

Prosecutors claim that in a bid to boost his status and bonuses Adoboli exceeded his trading limits and failed to hedge trades, faking records to cover his tracks, but Adoboli denies any wrongdoing, saying he was pressured to take risks by senior managers.

Sasha Wass QC, for the prosecution, told jurors Adoboli was “a gamble or two away from destroying Switzerland’s largest bank for his own gain”.

She said: “He did all of this by exceeding his trading limits, by inventing fictitious deals to conceal this and then he lied to his bosses.

“Mr Adoboli’s motive for this behaviour was to increase his bonus, his status within the bank, his job prospects and of course his ego.

“Like most gamblers, he believed he had the magic touch. Like most gamblers, when he lost, he caused chaos and disaster to himself and all of those around him.”

At one point he was at risk of causing the bank losses of 12 billion US dollars (£7.5billion), Southwark Crown Court heard during the trial.

But the Ghanaian-born former public schoolboy told jurors everything he did was aimed at benefiting the bank, where he viewed his colleagues as “family”.

Adoboli said he “lost control in the maelstrom of the financial crisis”, and was doing well until he changed from a conservative “bearish” position to an aggressive “bullish” stance under pressure from senior managers.

Describing the moment when he began to make serious losses as European markets crashed in July last year, he said: “The real problem was a result of the pressure to flip my position from short to long. This broke my control.

“I absolutely lost control, I was no longer in control of the decisions around the trades we were doing.”

Adoboli claimed staff were encouraged to take risks until they got “a slap on the back of the wrist”.

He told the court: “We were told to go for it, we went for it. We were told to push the boundaries, so we pushed the boundaries.

“We were told you wouldn’t know where the limit of the boundary was until you got a slap on the back of the wrist.

“We found that boundary, we found the edge, we fell off and I got arrested.”

Adoboli, of Clark Street, worked for UBS’s global synthetic equities division, buying and selling exchange traded funds (ETFs), which track different types of stocks, bonds or commodities such as metals.

He is accused of two counts of fraud and four counts of false accounting between October 2008 and September 2011, which he denies.

During his summing up of the evidence, Mr Justice Keith asked jurors to decide whether Adoboli acted dishonestly “by the standards of sensible and honest people” when considering the fraud charges.

Sign up for our news alerts today!

Our editors' picks for the day's top news delivered to your inbox or phone.

Sign up for email alerts Sign up for mobile alerts
1
2 3 4 5 6
7

Latest Crime news

Friday, February 5, 2016
Nemash Patel photographed the police cordon

Thousands of commuters were evacuated from one of the city’s biggest train stations today, as a suspected World War Two bomb was found on a building site near Victoria.

Friday, February 5, 2016
George Verrier was punched when he tried to calm down a fight. He hit his head on the pavement and later died (Photo: Metropolitan Police/PA Wire

)

Two Metropolitan police officers have been dismissed for gross misconduct after the death of 17-year-old George Villiers who was punched at a party in Bromley.

Thursday, February 4, 2016
They hit him with his own cane (Photo: Christopher Furlong/Getty Images)

Police are hunting for two men responsible for a sickening attack the Grahame Park estate in Colindale.

Wednesday, February 3, 2016
Franklyn Mathurin pleaded guilty to the burglary (Photo: Metropolitan Police)

A man who stole a laptop full of family photographs of a young boy as his father was burying him has been caught and jailed.

Tuesday, February 2, 2016
A man was stabbed in Plaistow Park on Friday

A murder inquiry is underway after a man who was knifed in a fight in Newham died in hospital yesterday.

Tuesday, February 2, 2016
Harjit Singh Dulai was stabbed to death last Wednesday (Photo: Metropolitan Police)

A boy aged just 16 has been charged with the murder of Harjit Singh Dulai, an Uxbridge man who was stabbed to death on Wednesday January 27.

What is this?

Near You Now

Don't Miss...

Competitions

Sony Smart Ultra HD 55'' LED TV

Enjoy the ultimate entertainment experience in your living room with the Sony Smart Ultra 55’’ LED TV. Be the envy of all your friends with this huge TV- you can change your living room into your own cinema! Get the boys around to watch the football or get the girls around to watch the DVD of 50 Shades.. this is a prize that everyone would enjoy! Stand a chance to upgrade your current entertainment system by wining this fantastic prize.

Read more
Surface Pro 4

Technology is ever evolving. We are constantly being shown new technology that is innovative, revolutionary and designed to make life easier for us all. Gone are the days of dial up modems and computers so large you needed half a room to store it. We are in the age of smooth, small and sleek. Companies are all trying their best to create technology that is easy to transport and guaranteed to be user friendly.

Read more

Latest Tech News

Transport