Today's announcement that a rogue trader may have cost UBS $2 billion highlighted some of the issues we have been raising. There are many questions about who and why. Press reports suggest that the rogue trader was from Ghana and that he listed Al Jazeera as a "favorite" on his Facebook page. There is likely much to this story that will never be revealed. Here are some of the reports made public:
According to a Facebook profile, Adoboli lists UBS as a network, and among "Activities and Interests" lists among many favorites, "Al Jazeera English, Ghana……
Adoboli, from Ghana, lists his home as "London, United Kingdom," ….
The Swiss bank's loss "is a staggering demonstration that all the clever systems that the banks now have, especially after the financial crisis, still cannot stop a determined individual getting round them if they want to," Chris Roebuck, Visiting Professor at Cass Business School in London, told Reuters.
The reality is that this story demonstrates that rogue traders do exist. Their motivation could be fame and fortune. Just as easily, though, it could be mayhem and destruction. This is simply one more potential area for financial terrorism or economic warfare. In light of Anna Chapman and other Russian spies operating in the United States undetected, we must recognize that the global economic war we are facing is serious and complicated. The risks are far to great to continue ignoring the threat.
All posts Copyright (c) 2011 Kevin Freeman, All Rights Reserved