UBS making the wrong adjustments

It was to be expected that there would be many outcomes from the rogue trading event at UBS. Generally speaking, catastrophes of this magnitude have a tendency for inspiring change and they are often seen as turning points in the evolution of let’s rethink the model.  

All this aside, the industry as a whole which takes in the regulators, banking community and freelance risk advisors in this case, would do well to avoid kneejerk reactions.

Three key oversights we should stand back and think about include some of the following: 

Going rogue is in vogue

It appears that little was learned from the Jerome Kerviel Société Générale rogue trading event. However, this time it is UBS that is attempting to explain to shareholders why it has fallen into the same trap of failing to identify fictitious trades on its books.

IBM Acquires ALGO

Mergers sometimes don't add the value investors or customers expect. Is the acquisition of Algo by IBM one such an example?