If you have read the news, you will not have missed that UBS – a swiss bank – made a trading loss. Here’s a short recap given by the Economist:
THE latest annual report of UBS, Switzerland’s biggest and most error-prone bank, states that “disciplined risk management and control are essential to our success.” That assertion has been proved right in the most embarrassing way, after allegedly unauthorised bets cost the bank a whopping $2.3 billion.
The papers are filled with the bank’s ‘Swiss Miss’, and write how it should not have been possible. Surely, shareholders will hold the bank’s Risk and Compliance Management Team accountable.
What went wrong? Why didn’t the Risk and Compliance Management Team stop the rogue trader?
In an e-mail circulating among bankers, an explanation is suggested. Since today is Friday – a day most people in an office spend circulating e-mails with footage of dancing cats or zoo-keeper bloopers – I am sharing that e-mail with you.
The e-mail’s subject: UBS’ risk managment & compliance team returns to work …
The e-mail’s picture:
Well – they may have done stuff wrong at work; but the UBS Risk and Compliance team has definitely got its cycling style right.