By Katharina Bart
ZURICH/LONDON Nov 22 UBS is nearing a
settlement in the coming days with regulators in Switzerland and
Britain for control failures that led to a $2.3 billion rogue
trading loss, a person familiar with the matter said on
The Swiss bank has finished its discussions with Finma, the
Swiss regulator, and is finalising a settlement with Britain's
Financial Services Authority (FSA), the source said. The two
regulators then plan to make a joint announcement.
The FSA could fine UBS between 20 million and 50 million
pounds, the Financial Times said earlier on Thursday, adding
that a deal could come next week.
The two regulators are jointly investigating the bank's
control failings that led to Kweku Adoboli, a trader on UBS's
"Delta One" desk, losing $2.3 billion for the bank.
That investigation is continuing after being put on hold
during Adoboli's criminal trial. He was convicted of fraud and
jailed for seven years on Tuesday.
UBS is keen to put the rogue trading scandal behind it,
which could speed up any settlement with regulators.
Finma does not have the power to impose fines. It is
expected to impose new supervisory conditions on UBS.
UBS, the FSA and Finma all declined to comment.
Any fine on UBS could be the second-biggest ever levied by
the FSA, after its 59.5 million pound penalty on Britain's
Barclays Plc in June as part of a UK-U.S. settlement
for the manipulation of Libor interest rates.
UBS is also one of about a dozen banks being investigated
for manipulating Libor, which could lead to further hefty fines
being meted out. It is also in the middle of a big overhaul of
its investment bank arm as it tries to cut costs and boost