Market volatility may have brought UBS losses to light

Recent volatility in financial markets may have helped bring the losses allegedly racked up by a rogue trader at UBS to light, risk managers speculate. The Swiss bank announced yesterday that a trader in its investment bank in London had lost approximately $2 billion through unauthorised trading, prompting the arrest of a 31-year-old employee.

"This often happens when you have periods of high volatility and traders cannot cover their positions," says Carsten Steinhoff, head of operational risk