UBS shares fall as bank reveals $2bn rogue trading loss
UBS has said it has discovered a loss in the region of $2bn as a result of rogue trading in its investment banking division.
The bank said it was still investigating the matter but warned the discovery may lead it to report a loss for the third quarter of 2011. It added no client positions are affected.
UBS shares shed more than 9% at the open in Zurich following the announcement, falling to around CHF10.00 as investors took flight on the news, but have since clawed back some losses.
The bank has continued to restructure its business as it attempts to move on from the financial crisis, announcing 3,500 job cuts across the company last month and renewing its focus on its wealth management division.
In July the bank scrapped earnings targets after reporting net profit of CHF1.01bn, down 49% year-on-year.
This article first appeared on Investment Week.