Rogue Trading No Training: The Connections

Ariane Chapelle

Adoboli, Kerviel, Leeson, Jett, Iguchi, Rusnak... the list goes on. Rogue traders appear to be endemic to the global financial system. Although only the largest and most spectacular losses make world headlines, smaller unauthorised trading goes on all the time at many of the world’s banks – some say it is actively encouraged by management, so long as it is making money. This is what is being argued by Sachin Karpe, a desk head at UBS AG’s wealth-management unit fired for unauthorized trading in 39 client accounts, and Laila Karan, a former client adviser who Karpe oversaw on the Asia-2 desk.

The two men are in court defending themselves against charges by the UK Financial Services Authority that they caused losses of $42.4 million on 21 client accounts through unauthorised trading. The FSA alleges that Karpe covered up a $130,626 loss he made in a client account with money from another client account. The regulator further claims, he also authorised the deletion of mailed account statements and made foreign exchange trades with clients’ money to minimize customer losses. Karpe’s defense claims that he had his clients’ implied consent, that the practice was widespread within UBS

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here