LONDON — Police charged Kweku Adoboli with fraud Friday in connection with the venerable Swiss bank UBS’s loss of $2 billion in unauthorized trades.
Wearing a powder-blue sweater, Adoboli appeared briefly in a London court, where he was charged with “fraud by abuse of position” and “false accounting” between 2008 and 2009 and between January and September 2011.
The allegations come at a time of deep turmoil in the banking sector with concerns over the exposure of the world’s banks to the escalating euro-zone debt crisis.
The City of London Police, which is in charge of law enforcement in London’s financial district, is investigating the case along with the Financial Services Authority, the Serious Fraud Office and the Crown Prosecution Service.
Adoboli, 31, has hired Kingsley Napley, the law firm that acted for Nick Leeson, an infamous rogue trader in Britain who caused the collapse of Barings Bank in the 1990s.