Britain’s Financial Services Authority has fined global financial firm UBS $47.5 million in a "rogue trading scandal." Mark Scott has been reporting on the scandal from London for our partner, The New York Times.
"They didn't have the right controls and mechanisms in place in house to really catch this problem when it first happened," Scott says. "It's a question of the bank itself not having the right checks and balances internally."
"These are multi-million, if not billion dollar trades on a day to day basis," Scott says. When this much money is on the line, it is important that the banks are taking responsibility for the actions of their employees.
No one is naive enough to think a $47 million fine will put a stop to illegal or irresponsible trading practices. As Mark Scott says, "It's never til the next time."