UBS chief gives up bonus after London 'fraud'

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The Independent Online

Carsten Kengeter, head of investment banking at UBS, has given up his bonus for last year after the Swiss bank lost more than $2bn (£1.3bn) following alleged fraud by the London trader Kweku Adoboli.

Mr Kengeter was paid Sfr8.5m (£5.8m) in bonuses in 2010 as part of his total Sfr9.3m pay package.

Meanwhile, UBS sent a chill wind through the City yesterday as its investment banking arm lost money for the second quarter running, and warned there was no sign of any improvement so far this year. At least one analyst said it amounted to a first-quarter profit warning. Fourth-quarter profits plunged by 76 per cent to Sfr393m as the investment bank made a loss of Sfr256m against a profit of Sfr100m a year ago. For the full 2011 year, profits dropped from Sfr7.5bn to Sfr4.2bn.