Errors In Derivatives Pricing Models Fuel Sfr 200m Trading Loss At UBS
MANAGEMENT & OPERATIONS
UNION Bank of Switzerland (UBS) has sacked four senior executives after its equity derivatives trading operation lost some 200 million Swiss francs ($140 million). UBS attributes the losses to errors in derivatives pricing models and changes in UK tax legislation.
The bank has completed an internal review looking into the SFr 200 million loss and is framing it as "one-off calculation error", says a spokesperson for UBS. The spokesperson adds that the bank is reviewing its risk management
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