http://bit.ly/pYKxbs National Small Business Week 2010

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UBS boss Oswald Gruebel said he would not be resigning, as the bank raised its estimate of losses racked up by London-based rogue trader Kweku Adoboli to £1.5billion.

Defiant: UBS boss Oswald Gruebel said he would not be resigning
The Swiss bank said the loss, previously thought to be £1.3billion, was caused by unauthorised trades on stock index futures made over the past three months.
It said the transactions were within normal limits and slipped through risk controls due to ‘fictitious trades’ in complex financial instruments called exchange traded funds (ETFs), which were used to cover up losses. UBS also countered suggestions that it did not notice the trades until Adoboli came forward, saying the 31-year-old trader – charged last week with fraud and false accounting – had been responding to the bank’s inquiries.
Mr Gruebel said calls for his
resignation were ‘purely political’ and that he was ‘not thinking about
stepping down’.
He added that while he bore ultimate responsibility, he did not feel
‘guilty’ for failing to prevent the costly and embarrassing incident.

His defiant stance comes amid
suggestions that Swiss regulators could tell the bank to hive off or
close down its investment banking division, which houses the ‘Delta One’
desk where Adoboli worked. Such a drastic response would deal a huge
blow to the City, where UBS employs some 6000 workers.
 



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The Financial Services Authority and
Swiss regulators have drafted in accountancy firm Deloitte to
investigate the affair.
Meanwhile, UBS senior independent director David Sidwell – a former
finance chief at JP Morgan Chase – is leading the bank’s own probe into
the matter.