UBS rogue trader loses $2 billion

Ever wondered why traders are only called "rogue" when they loose money? What happens to those who make unauthorized trades that are profitable?

By Emma Thomasson

(Reuters) - Switzerland's UBS said on Thursday it had discovered unauthorized trading by a trader in its investment bank had caused a loss of some $2 billion.

"The matter is still being investigated, but UBS's current estimate of the loss on the trades is in the range of $2 billion," the bank said in a brief statement just before the stock market opened.
"It is possible that this could lead UBS to report a loss for the third quarter of 2011. No client positions were affected."

UBS shares immediately tumbled 8 percent at the open and were trading down 5.8 percent at 10.30 francs at 0714 GMT (3:14 a.m. ET), compared with a flat European banking sector index......read on