Thursday, September 15, 2011

UBS Not Minding The Store While Trader Wipes Out $2B

I can't resist taking a swipe at a former employer that treated me poorly.  A loose cannon at UBS decided to play some unauthorized games with the firm's capital and lost $2B.  I think that's just great.  I'm not surprised at all given the lack of competent people there.  If you're dumb enough to gamble with somebody else's money with no regard for consequences, work at UBS.  If you don't know how to design risk management systems that can catch irregular trades, work at UBS.  This firm touted its Dillon Read internal fund while I was there and had to fold it up a year later because the people running the fund were clueless.

Go down hard, UBS.  You've had it coming for the longest time. 

Full disclosure:  No position in UBS at this time.