I have long had a question as to the basic reason for the banks and other financial institutional actions that resulted in the latest financial implosion, starting with Lehman Brothers in 2008.
It appears, in the case of UBS at least, it was simple incompetence, hubris, and a general organizational feeling "it can't happen here," rather than any carefully planned "bust out" scam.
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Kweku Adoboli, the UBS trader alleged to have lost UBS $2bn (£1.3bn) in unauthorised trading, has appeared in court in London charged with fraud and false accounting.A few of the other *KNOWN* high-dollar "rogue" traders have been Jérôme Kerviel [ Société Générale - France] and Nick Leeson [Barings - UK].
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The reason this is important is that the legislation/regulation to prevent, or at least limit, the danger of institutional insolvency and the need for yet more taxpayer "rescue" funds is considerably different for institutional incompetence/ignorance and "insider" fraud.