UBS (UBS) Risk Management Fails Again

A rogue trader at UBS (NYSE:UBS) was able to get away with unauthorized trades which brought losses as high as $2 billion to the company.

Reports are London-based trader Kweku Adoboli was arrested in connection to the trades. He worked at the exchange-traded-fund desk of UBS.

This is a big blow to the giant bank, which has bee working to build confidence in their risk-management systems after having to write down $50 billion about three years ago in relationship to securities trades.

It is expected UBS management will come under pressure again to shrink its FICC business, as it again points to the inability of leadership to successfully manage the risk.

UBS AG was trading at $11.29, down $1.39, or 10.96 percent, as of 1:46 PM EDT.