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UBS Name Ermotti Interim CEO As Gruebel Quits Following $2.3 Billion Trading Loss

UBS has name Ermotti the interim CEO as Gruebel quits after a $2.3 billion trading loss due to fraud and false accounting was discovered.

UBS has name Ermotti the interim CEO as Gruebel quits after a $2.3 billion trading loss due to fraud and false accounting was discovered.

The Swiss Bank UBS announced on Saturday that Sergio Ermotti will act as the interim chief executive officer for the bank after the board accepted the resignation of Oswald Gruebel as CEO of UBS following the $2.3 billion trading loss announced the previous week.

The president of UBS, Kaspar Villiger, said that the board were reluctant to accept Gruebel’s resignation, but they realize that it is his duty to assume the responsibility for the unauthorized trading. The board met in Singapore and are hoping to put measures in place which will prevent a similar offense happening in the future.

Gruebel a German who is 67 had retired before he took on the job of CEO for UBS and led the bank through a difficult time, and back into profit during the two years he worked for the bank. Ermotti is a Swiss who is 51, and now faces the task of trying to return the bank to profit, after it will in most likelihood report a loss in the third quarter. His position as chief executive officer will end when a permanent replacement is found, although right now, it is thought that Ermotti is in the running for the job, but so too is Carsten Kengeter, a German who is actually the head of the investment-banking unit where the loss occurred. Mr. Villiger has said that Kengeter had handled the crisis well at the investment bank, and said that “I do not see any reason to doubt the future of Carsten Kengeter.”

On Thursday, a judge in London ordered Kweku Adoboli to be kept in jail until a hearing scheduled for 20 October. Adoboli has been charged with fraud and false accounting in the $2.3 billion trading loss after he was arrested last week, with police saying the charges date back to 2008. He worked in London, and is thought to have been the only person involved in the huge loss.

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