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.