‘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

Wednesday, July 29, 2015
Walkers have been urged to report any suspicious activity in the area (Photo by Oli Scarff/Getty Images)

People are being warned to be vigilant on Hackney Marshes after three women were stalked and hurt in what police believe were sexually-motivated attacks.

Wednesday, July 29, 2015
A woman'’s body was discovered at a hostel in Perryn Road, Acton

A woman’s body was found at a hostel for vulnerable people in Acton and a man has been charged with her murder, police said.

Wednesday, July 29, 2015
Police want to identify this woman after she was caught on CCTV acting suspiciously in Westminster (Picture: Met Police)

A ‘suspicious’ woman twice tried to get into a ‘highly restricted area’ in Westminster and police think she then left two large knives behind, wrapped in her scarf.

Tuesday, July 28, 2015
Police would like to speak to this man (Picture: Met Police)

A predator sexually assaulted a 17-year-old girl in broad daylight as she waited for a bus on Brixton Road, police said.

Monday, July 27, 2015
Police would like to speak to this man (Picture: British Transport Police)

A 63-year-old was left with a bleeding nose and spit on his face after an argument with a man he bumped into on a Baker Street Tube station escalator, British Transport Police (BTP) said.

Monday, July 27, 2015
The innocent man was attacked by a gang of men on Tower Bridge

This shocking video shows a gang of around 12 hooded thugs attacking an innocent man on Tower Bridge in an unprovoked ‘vicious’ assault.

What is this?

Near You Now

Don't Miss...

Competitions

Get your hands on some fresh trainers!

Need some new shoes to head to work or some new heels for a night on the cobbles? London24 has teamed up with online retailer Sole Trader to offer £100 worth of shoes to one lucky reader.

Read more
Take in the stunning sites of London from the summit of the O2!

Up at The O2 has teamed up with London24 to give one lucky reader the chance to experience urban mountaineering this summer with an exhilarating 90-minute climb across the roof of one of London’s most iconic landmarks.

Read more
Terrific tea, creamy cakes and splendid sandwiches at Mews of Mayfair.

Celebrate a truly quintessentially British tradition with the chance of winning a luxurious Afternoon Tea for two people at Mews of Mayfair, complete with a glass of Veuve Clicquot champagne.

Read more