Belfast Telegraph

Shareholder slams Swiss bank over £1.5bn alleged fraud

By Sean Farrell

UBS's biggest shareholder heaped pressure on the Swiss bank yesterday by criticising it publicly over the £1.5bn loss inflicted by an alleged rogue trader.

After meeting UBS's chief executive, Oswald Gruebel, Singapore's sovereign wealth fund issued a rare public statement taking issue with the bank's failures and calling on it to take decisive action.

GIC, which owns 6.44% of UBS, said: “[We] discussed the alleged fraudulent trading that led to the large financial loss for UBS. GIC expressed disappointment and concern at the lapses and urged UBS to take firm action to restore confidence in the bank.”

GIC added that it had demanded details of how risk controls would be strengthened.

Mr Gruebel is in Singapore for a strategy board meeting where the bank's directors will discuss the implications of the alleged fraud and the fate of UBS's troubled investment bank.

The quarterly meeting, bringing together UBS's management and supervisory boards, is said to have been scheduled before the trading loss was discovered last week.

UBS declined to comment on GIC's statement or a report due for publication in Swiss magazine Bilan that says Mr Gruebel has been asked to leave the bank.

Belfast Telegraph