(Bloomberg) — John Hughes, the former senior trader on the exchange-traded funds desk atUBSAGs global synthetic equities division, was banned from working in the U.K. finance industry over his involvement in a $2.3 billion unauthorized trading loss caused by Kweku Adoboli, another formerUBStrader.
Hughes knew about and didnt report an internal fund, dubbed an umbrella, that Adoboli created to help them reserve profits to cover future losses, the Financial Conduct Authority said in a statement yesterday.
Adoboli is serving a seven-year sentence after being convicted in 2012 in London for fraud. The Zurich-based bank was fined 29.7 million pounds ($50.2 million) in 2012 for failing to detect or prevent the trades.
Hughes represented himself during proceedings at the FCA, the regulator said. It declined to release contact information for the former trader. Hughes cooperated with the probe, the regulator said.
