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A UBS Trader, From Typical to Rogue

2011-09-15 14:15:30

By BEN PROTESS and JULIA WERDIGIER

Kweku Adoboli, identified as the rogue UBS trader who racked up $2 billion in

losses, followed a traditional path in finance.

He attended a good school, the University of Nottingham, which is part of a

group of leading institutions known in Britain as red brick universities. He

landed a job at a top firm, UBS, shortly after graduation. And he worked his

way up through the ranks, eventually joining a highly profitable trading desk

in the investment bank.

But his story is anything but typical.

On Thursday, Mr. Adoboli, 31, was arrested at 3:30 a.m. at a business office on

suspicion of fraud by abuse of position and taken to a police station for

questioning, the authorities said. UBS had discovered the trader had lost $2

billion just hours before, reporting it to the police at 1 a.m.

While neither the police nor UBS released the name of the trader, a person with

knowledge of the situation identified him as Mr. Adoboli. In regard to the next

steps, a police spokeswoman, who did not provide the name of the trader in

custody, said that person could be sent home, released on bail or charged with

an offense.

It s an outcome that seemed unlikely for Mr. Adoboli, described as outgoing and

social.

At the University of Nottingham, where he focused on computer science, Mr.

Adoboli worked on communications projects for the student union, said a

schoolmate who spoke on the condition of anonymity. He also helped new students

adjust to life on campus, organizing social activities during the school s

freshers week, according to a university spokesman. Back then, he told Sky

News that the first week of school was an amazing opportunity for hundreds of

students to meet at a jamboree of parties.

After graduation in 2003, he joined UBS, becoming a investment adviser trainee

in London a few years later. At the time of his arrest, he was a director in

the exchange-traded funds and Delta One trading desk, an increasingly important

driver of profits at the financial firm. By regulatory standards, he had a

clean record in Europe.

In his spare time, Mr. Adoboli liked photography, cycling and wine, according

to his Bloomberg profile. And he appeared to have a sense of humor. On his

Facebook page, he listed Princess Beatrice s ridiculous royal wedding hat

among his interests.

He also enjoyed the high life, like many young financial professionals. Until

about four months ago, Mr. Adoboli lived in a pricey loft on Brune Street in

London, not far from the UBS office.

A neighbor in the building, who described Mr. Adoboli as a really nice guy,

recalls that the trader held quite a loud party. When the neighbor, who

requested anonymity, asked him to lower his music, he acquiesced and gave him a

nice bottle of champagne for his trouble.

Matthew Saltmarsh and Azam Ahmed contributed reporting.