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She said that on Sept. 14, 2011, Adoboli walked out of his office, saying he had to go to the doctor. Later that day he sent his employers an email admitting his deceit. In the email, headed "An Explanation of my Trades," he admitted that "trades that you see on the ledger are not trades that I have done with a counterparty as I previously described. "I used the bookings as a way to suppress the ... losses that I have accrued through off the book trades that I have made," he wrote. Adoboli was arrested the next day and spent several months in custody. He is currently on bail. Prosecutors described Adoboli as a high-flying young banker who began working at UBS in 2003 in the back office, where he became expert in the bank's accounting and control systems. Prosecutors say he later used that knowledge to cover up his fraud. He was promoted to trader in late 2005 and, Wass said, rapidly became "a trusted and admired member of the bank's trading team." His remuneration rose almost tenfold between 2005 and 2010. "He was making large profits for the bank -- or so they thought," Wass said. The incident was a major blow to UBS, one of the European banks hardest hit losses from by the U.S. subprime mortgage market. Chief executive Oswald Gruebel, brought in to help restore the bank's reputation for propriety, resigned after Adoboli was arrested. If convicted, Adoboli will join a rogue's gallery of traders that includes Jerome Kerviel, who gambled away $6.7 billion at French bank Societe General until he was caught in 2008, and Nick Leeson, who made so many unauthorized trades that it caused the collapse of Barings Bank in 1995.
[Associated
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