In a bid to boost his bonuses and chances of promotion, Ghanaian-born trader Kweku Adoboli exceeded his trading limits, failed to hedge trades and faked records to cover his tracks during 2008 and 2011
London: UBS trader Kweku Adoboli, who gambled away $2.3 billion of the Swiss bank's money, was jailed for seven years in London for Britain's biggest-ever fraud, reports PTI.
The Ghanaian-born banker, 32, had been found guilty of two counts of fraud by a jury at Southwark Crown Court earlier today but cleared of four charges of false accounting.
"There is a strong streak of the gambler in you," judge Brian Keith told Adoboli as he sentenced him. "You were arrogant to think the bank's rules for traders did not apply to you.
"The tragedy for you is that you had everything going for you.
"Your fall from grace as a result of these convictions is spectacular."
The judge said Adoboli would serve half his sentence before being released on licence.
Adoboli wiped away tears as he was sentenced. He had admitted the losses but denied any wrongdoing.
During the two-month trial he claimed senior managers were fully aware of his activities and encouraged him to take risks to make profits for UBS.
But prosecutors said that in a bid to boost his bonuses and chances of promotion, Adoboli exceeded his trading limits, failed to hedge trades and faked records to cover his tracks between 2008 and 2011.
The tactics initially paid off -- prosecutors said he earned $90 million for UBS and its clients by May 2011 and the bank rewarded him with huge bonus increases, rising from $23,887 in 2008 to $3,98,125 in 2010.
But as the financial crisis took hold, Adoboli's deals went bad. The court heard had that at one point he was at risk of causing the bank losses of $12 billion.
"The amount of money involved was staggering, impacting hugely on the bank but also on their employees, shareholders and investors," said Andrew Penhale, deputy head of fraud at the Crown Prosecution Service.
"This was not a victimless crime."
A UBS spokesman said: "We are glad that the criminal proceedings have reached a conclusion and thank the police and the UK authorities for their professional handling of this case. We have no further comment."
If the government borrows and consumes that money, the pressure of spending is on us and the pain of repayment of that loan is on our children's generation says the RBI governor
Mumbai: Highlighting the need for government spending on productive purposes, Reserve Bank of India (RBI) Governor D Subbarao has said future generations should not pay the price for the high borrowing of today, reports PTI.
"Government borrowing is not necessarily bad, but if the government borrows and consumes, that is bad," Subbarao said, addressing the AD Shroff memorial lecture.
The government should rather focus on investing in productive sectors like infrastructure and ports, he said.
"If the government borrows and consumes that money, the pressure of spending is on us (and) the pain of repayment of that loan is on our children's generation."
On the issue of reserve currencies, he hinted at the US dollar continuing to hold the dominant position, stating the euro has "failed" to live up to the expectations.
Subbarao called upon emerging market economies like India to build greater currency chests for stability.
Speaking on global imbalances, he said the imbalances today do not arise from China as was the case in the days leading up to the 2008 crisis, but from oil exporting nations like Russia.
The RBI chief reiterated the need to change the structure of the IMF, which he said, reflects the economic realities of the 1960s.
He said there was a request by India to start a dollar swap facility with the US, but Washington had reservations as our capital account is not fully convertible.
India made the request during the visit of US Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke here last month, Subbarao said, adding America is yet to convey a final decision on the matter.
Worldwide remittances will reach $534 billion in 2012 with India topping the list of developing countries says a World Bank report
Washington: India will receive record $70 billion remittances in 2012, topping the list of developing countries which are expected to receive a total of $406 billion this year, the World Bank has said, reports PTI.
After India, China will stand second with $66 billion, followed by Mexico and the Philippines with $24 billion each, a latest report by the bank said on Tuesday.
In all, worldwide remittances -- including those to high-income countries -- will reach $534 billion in 2012, according to a newly updated World Bank brief on global migration and remittances.
Other large recipients are Nigeria ($21 billion), Egypt ($18 billion), $14 billion each for Pakistan and Bangladesh, followed by Vietnam ($9 billion) and Lebanon ($7 billion).
Officially recorded remittance flows to developing countries are estimated to grow by 6.5% over $351 billion in 2011, with India again topping the chart with $58 billion, followed by China ($57 billion), Mexico ($24 billion) and the Philippines ($23 billion).
Worldwide remittances, including those to high-income countries, are projected to grow to $685 billion in 2015.
According to the World Bank, remittances to developing countries are expected to rise 8% in 2013 and 10% in 2014 to reach $534 billion in 2015.
In its report, the World Bank notes that the true size of remittance flows, including unrecorded flows through formal and informal channels, is believed to be significantly larger.
"Compared to private capital flows, remittance flows have shown remarkable resilience since the global financial crisis, registering only a modest fall in 2009, followed by a rapid recovery. The size of remittance flows to developing countries is now more than three times that of official development assistance," the Bank said.