Former UBS trader Kweku Adoboli was charged on Friday morning with two additional counts of false accounting as he took the stand to give evidence in the London trial against him.
In an unexpected twist on the 27th day of the trial at Southwark Crown Court, theCrown Prosecution Service added the two additional charges to his existing indictment.
Adoboli now stands accused of two counts of fraud by abuse of position and four of false accounting.He denies all of the charges.
The Ghanaian-born trader, 32, is alleged to have caused a $2.3bn loss at UBS last year from unauthorised trading.
The two additional counts offalse accounting against himrelate to the so-called"umbrella" - a device allegedly used by Adoboli to conceal his trading profitsand losses.
The use of the umbrella had previously formed part of the two original counts offalse accounting against Adoboli. These two counts have now been amended inorder for the two new counts to be added.
Mr Justice Keith explained this morning: "It's not to add to the allegations against Mr Adoboli. It's been inserted into the indictment in order to clarify the allegations being made."
The original counts - two of fraud and two of false accounting - now solely refer to the alleged bookingof fictitious hedges to conceal Adoboli's true risk position.
The former ETF trader is accused of having booked fictitious trades to superficially reduce the exposure to the bank from potential losses on real trades he had made.
The jury heard earlier in thetrial that Adoboli had allegedly booked real trades that exposed UBS to losses that may have risen to$12bn in the summer of 2011. He allegedly hid this exposure through fake ETF trades, the court heard.
Banking and finance News,stock watch, economic report and investment tips and avenues.
Friday, 26 October 2012
Thursday, 25 October 2012
China blocks New York Times Web site after report about PM's wealth
An explosive story on the massive wealth accumulated by the family of Prime Minister Wen Jiabao caused the Chinese government to block the Web site of the New York Times early Friday morning, just days before asensitive once-a-decade transition of power from Wen and others to a new generation of leaders.
Depreciation
Depreciation – Normally, charges against earnings to write off the cost, less salvagevalue, of an asset over its estimated useful life. It is a bookkeeping entry and doesnot represent any cash outlay nor are any funds earmarked for the purpose.
Director
Director – Person elected by shareholders to serve on the board of directors. The directors appoint the president, vice presidents, and all other operating officers. Directors decide, among other matters, if and when dividends shall be paid.
Depository Trust Company (DTC)
Depository Trust Company (DTC) – A central securities certificate depository through which members effect security deliveries between each other via computerized bookkeeping entries thereby reducing thephysical movement of stock certificates
Discretionary account (DA)
Discretionary account – An account in which the customer gives the broker orsomeone else discretion to buy and sell securities or commodities, including selection, timing, amount, and price to be paid or received.
Dollar-cost-averaging (DCA)
Dollar-cost-averaging – A system of buying securities atregular intervals with a fixeddollar amount. Under this system investors buy by the dollars' worth rather than bythe number of shares. If each investment is of the same number of dollars, payments buy more shares when the price is low and fewer when it rises. Thus temporary downswings in price benefit investors if theycontinue periodic purchases in both good and bad times, and the price at which the shares are sold is more than their average cost. Dollar-cost-averaging does not assure a profit and does not protect against loss in declining markets. Since dollar-cost-averaging involves continuous investment in securities regardless of fluctuating price levels of such securities, investors should consider their financial abilityto continue purchases through periods of low pricelevels
Debit balance (DB)
Debit balance – In a customer's margin account, that portion of the purchase price of stock, bonds or commodities that is covered by credit extended by the broker to the margin customer
Debenture
Debenture – A promissory note backed by the general credit of a company and usually not secured by a mortgage or lien on any specific property.
Dow theory (DT)
Dow theory – A theory of market analysis based upon the performance of the Dow Jones Industrial Average and transportation stock price averages. The theory says that the market is in a basic upward trend if one of these averages advances above a previous important high, accompanied or followed by a similar advance in the other. When both averages dip below previous important lows, this is regarded as confirmation of a downward trend. The Dow Jones is one type of market index
Subscribe to:
Posts (Atom)