LONDON — UBS is expected to face a multimillion-dollar fine in connection with the $2.3 billion trading loss caused by a former trader, according to two people with direct knowledge of the matter.
The potential fine by British authorities against the Swiss bank may be $47 million to $80 million and could be announced as early as next week, according to one person, who spoke on the condition of anonymity.
On Tuesday, former UBS trader Kweku M. Adoboli received a seven-year jail sentence on two counts of fraud in connection with the loss for abusing his position at the Swiss bank from 2008 to 2011. Adoboli was found not guilty on another four counts of false accounting.
The Financial Services Authority, the British regulator, and the Swiss Financial Market Supervisory Authority opened a joint inquiry last year into the enormous trading loss. On behalf of the regulators, the accounting firm KPMG conducted a $20 million investigation into the internal failures at the Swiss bank that led to Adoboli’s trading loss.