How Does Rogue Trading Work?

Friday, September 16, 2011

Over the past twenty-four hours, we’ve learned more about the rogue trader that lost the Swiss bank UBS $2 billion. It turns out that the trader, Kweku Adoboli, had the same job at UBS as Societe Generale's Jérôme Kerviel, whose fraudulent trading cost the bank €4.9 billion in 2008. How does this happen, and what is it that drives these traders to commit fraud?

Jared Dillian worked at Lehman Brothers from 2001 to 2008, and is the author of a new book called "Street Freak." He watched Wall Street trading implode from the inside.

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