This week's risk management news includes a $2.6b credit scam in Iran, effects of UBS' rogue trade in Asia, and UBS’ CEO’s reprimand and potential reduction of their investment bank.
September 21, 2011 | The Asian Banker Editor
$2.6 billion credit scam under investigation in Iran
In what is being perceived as Iran’s biggest financial scam involving some $2.6 billion, 19 individuals have been arrested to date and the finance minister as well as central bank governor have been summoned to discuss the case in Parliament. The fraud involved the use of forged documents to get credit at one of Iran’s top financial institutions to purchase assets including major state-owned companies.
UBS rogue trade effects ripple across Asia
The rogue trades that cost UBS $2.3 billion have turned attention to certain trading instruments that may carry risks unique to Asia. Banks across the region, which have been busy peddling Asia-focused exchange traded funds are now scrambling to ensure similar nasty surprises are not lurking on their books.
UBS CEO receives reprimand from Government of Singapore Investment Corporation
Oswald Gruebel, chief executive officer of UBS AG, may face pressure to cut risk and shrink the investment bank when the board meets in Singapore. He has already been reprimanded by Government of Singapore Investment Corporation, the company’s biggest investor.
Re-disseminated by The Asian Banker
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Risk And Regulation Working GroupKeywords:Iran, UBS, Rogue Trades