Reuters: Regulatory News: UBS nears 50 mln stg fine on Adoboli case -FT

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UBS nears 50 mln stg fine on Adoboli case -FT Nov 22nd 2012, 17:32 LONDON | Thu Nov 22, 2012 12:32pm EST LONDON Nov 22 (Reuters) - UBS AG is nearing a settlement with regulators that could land it with a fine of up to 50 million pounds ($80 million) for control failures that led to a $2.3 billion rogue trading loss, the Financial Times said. Britain's Financial Services Authority and Finma, the Swiss regulator, are jointly investigating the bank's control failings that led to Kweku Adoboli, a trader on UBS's "Delta One" desk, losing more than $2 billion for the bank. That investigation is continuing after being put on hold during Adoboli's criminal trial. He was convicted of fraud and jailed for seven years on Tuesday. UBS is keen to put the rogue trading scandal behind it, which could speed up any settlement with regulators. Finma has essentially finished its enforcement action and is waiting for the FSA and UBS to finalise details on a penalty that is likely to be between 20 million pounds and 50 million, the FT said, citing people familiar with the negotiations. It said a joint announcement could come next week. Finma does not have the power to impose fines. It is expected to impose new supervisory conditions on UBS. UBS, the FSA and Finma all declined to comment. Any fine on UBS could be the second-biggest ever levied by the FSA, after its 59.5 million pound penalty on Britain's Barclays Plc in June as part of a UK-U.S. settlement for the manipulation of Libor interest rates. UBS is also one of about a dozen banks being investigated for manipulating Libor, which could lead to further hefty fines being meted out. It is also in the middle of a big overhaul of its investment bank arm as it tries to cut costs and boost profits. Link this Share this Digg this Email Reprints

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