UBS 2 Billion Loss Analysis: Overview Of The Firm, Summary Of The Case (Case Study Sample)
Since the mid-1980s there have been some spectacular losses in derivatives market.Below, you have list of the companies, which had big losses due to their positions in derivatives products. For this project you will need to obtain information about the whole event on the firm your group draw and write a full report and last present your findings about this event to all of us.
the case we study is UBS ($2 Billion).
In this project, you will write a comprehensive final report between 10 to 12 typed pages, doublespaced,
Times News Roman, #12 font size.
1. Title page: Your name(s) and group # (underline the group leader's name), course #, term and
date, and instructor's name.
2. Introduction: Briefly describe your project and what you learn from this project.
3. Overview of the firm: Explain the industry of the firm and the important key elements of the firm.
4. Summary of the whole event: Chorological order of the whole event that led this firm to have big
losses. When did it start? Who was responsible for this loss? When did the firm first know about the
5. Analysis: Discuss in detail and analyze the whole event. What went wrong? What was the strategy
of the firm? Who was the key person(s) for the whole event? What did the upper management do?
What happened at the end? Did the firm go bankrupt? What happened to the key players and the
6. Conclusion: Lessons to be learned from this specific event.
7. Appendices: [In order for group leader to receive full credit for peer evaluation, confirmed weekly
E-mail records should be included (the group leader responsibility) ].
UBS 2 Billion loss analysis
UBS 2 Billion loss analysis
The UBS is a global financial organization which provides asset management, wealth management and investment banking services for companies in both the private and public arena. The company also offers investment and wealth management services to the retail sector. The name of the company was initially an acronym of the Union Bank of Switzerland, a name it lost following its amalgamation with Swiss Bank Corporation in the year 1998. Today, UBS is the largest financial institution in Switzerland with a investment of about 2.8 trillion Swiss Francs. In addition, the bank has branches in over 50 countries and an employee base of about 59, 387 as of 2016. In 2011, the bank underwent a loss of 2 billion dollars caused by a rogue trader identified as director in the institution’s Global Synthetic Equities Trading branch (Shefrin, 2012). It only emerged later that the top management of the institution had failed to act upon information provided by the company’s computer system. While the rogue trader by the name Kweku Adobili was arrested and charged for fraud charges, the loss supposedly a huge loss for the company with its share price dipping with about 10.8 percent as compared with the stock price of other banks which rose with between 3 and 6 percent.
Overview of the Firm
The UBS Company has a history of 15 years with operations in over 50 countries spread across five continents. The company prides itself with a vast experience in managing investment portfolios of high end individuals. The company’s global strategy is focused on strengthening its wealth management branch while identifying and integrating synergies in the investment bank as well as Asset Management business units with the aim delivering outstanding solutions to its clientele base. The business wealth management approach is founded on the trust relationship of its financial advisors as s well as its customers. The company’s wealth management team combines insights gathered through global research professionals and local skills to offer clients access to superb investment decisions. Informed by strong investment process, the chief investment office insights assist customers to make better good investment decisions in a swift global market place.
According to the company, its global solutions are driven by the needs of the customers. It provides a wide array of solutions both from the inside and outside the company and regarding a wide variety of products and services. Today, the company remains strong with long-term credit ratings standing at 13.8 percent. The company’s capital position is also strong with its common equity tier 1 ratio remaining high among global banks. UBS is registered as a joint company under Swiss laws and its shares are listed at New York Stock Exchange and the SIX Swiss exchange. It can be noted that despite the bank having its origins in Switzerland, its main operations are in United States. The structure of the company includes a total of five divisions including wealth management, asset management, investment bank, personal and corporate banking and wealth management Americas (Shefrin, 2012). The corporate center is charged with overseeing the control functions, including finance, technology, legal issues and risk control. The division also oversees logistics including human resources, operations, communication and information and physical security. Major competing banks include Credit Suisse, Migros Bank, Royal Bank of Scotland and Citigroup.
Summary of the Case
A day before he was arrested, Adoboli Kweku had informed his boss that there was a loss of 2 billion dollars due to trades that had forward settlement dates. This d...
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