Kweku Adoboli, the UBS rogue delta one trader who earned £360k in 2010 but only had £4 in his bank account at the time of his arrest, has been found guilty of two counts of fraud, but cleared of four counts of false accounting. He now faces a maximum of 10 years in jail.
When Adoboli emerges from prison, he may therefore be 42 years old. He will certainly have limited assets and absolutely no chance of getting another job in investment banking. So what next? Once again, we would like hold up the example of Nick Leeson.
As we pointed out when Jérôme Kerviel was sentenced, Nick Leeson is now doing very well for himself indeed on the after dinner speaking circuit. Back in 1999, the BBC reported that Leeson had earned £60k for a single speech. According to his agent, Leeson now charges £7.5k plus VAT for a speaking engagement in the UK and between £10k-£20k for speaking engagements overseas, plus expenses. During the week we spoke to his agent, Leeson had been to Moscow, Dubai, and Australia – suggesting he’d made around £40k. We asked Nick’s agent if we could interview him for an article, but even this comes with a cost: Nick Leeson doesn’t even do interviews for anything less than £250. The money he makes from these endeavours appears to be his to keep: Leeson said he was no longer paying his creditors back in 2005.
Admittedly, Leeson’s story is a little more dramatic than Adoboli’s. Not only was Leeson a rogue trader, but he brought down an entire bank, went on the run, split up with his wife and survived cancer. UBS remains in existence and Adoboli has simply been incarcerated in Wandsworth prison and forced to give up his £1k a week flat. However, Adoboli may yet swing the public mood in his favour: his exoneration on the false accounting charges suggests the court believed Adoboli wasn’t out for personal gain, but agreed that he was nobly trying to protect the bank.
Adoboli now has a decade in which to write his memoirs, after which he too could appear at speaking event near you – for a five figure fee.
“These losses were the result of a group of traders who were asked to do too much, with too little resources, in a market that was too volatile.” (Bloomberg)
Wall Street has increasingly taken up its old habit of blaming junior bankers and traders for what goes wrong. (Bloomberg)
Four people have made a £2.2m profit at high frequency trading firm Maven. (Amsterdam Trader)
Caixa Economica Federal, Brazil’s biggest mortgage lender, plans to start its investment-banking unit by the second quarter of 2013. It will be staffed by current employees. (Bloomberg)
In Netherlands, bankers’ bonuses might be capped at 20% of their salaries. (La Tribune)
JPMorgan’s got a female CFO. (Wall Street Journal)
Other candidates for the JPMorgan CFO job had included commodities chief Blythe Masters and Lou Rauchenberger, a co-chief administrative officer of the company’s corporate and investment bank. (Wall Street Journal)
The private schools whose alumni are mostly likely to achieve national prominence: Eton, Winchester, Charterhouse, Rugby, Westminster, Marlborough, Dulwich, Harrow, St Paul’s Boys’ School and Wellington College. (The Times)
I am a partner managing director at Goldman Sachs. I work 55 hours a week and my hair has turned grey. (Quora)