<p>UBS AG had previously put the loss at USD 2 billion when news of the scandal first broke Thursday.<br /><br />In a bid to reassure investors, the Zurich-based bank said today it has "now covered the risk resulting from the unauthorised trading" and its equities business "is again operating normally within its previously defined risk limits."<br /><br />UBS also confirmed for the first time that the trader, 31-year-old Kweku Adoboli, was already under investigation by the bank when he revealed his actions to authorities Wednesday.<br /><br />"The loss resulted from unauthorised speculative trading in various S&P 500, DAX, and EuroStoxx index futures over the last three months," UBS said, adding that the magnitude of the bank's risk exposure was hidden by fake trades.<br /><br />Adoboli remains in custody in London, charged Friday with acts of fraud and false accounting dating back to 2008. His next court appearance is Thursday.<br /><br />The fact that the fraud took place over three years raises serious questions about the bank's ability to manage its risk. UBS said it has set up a special committee chaired by David Sidwell, the bank's senior independent director, to investigate the incident.<br /><br />Speaking for the first time since UBS revealed the loss, Gruebel told the Swiss weekly Der Sonntag that the loss couldn't have been prevented.</p>
<p>UBS AG had previously put the loss at USD 2 billion when news of the scandal first broke Thursday.<br /><br />In a bid to reassure investors, the Zurich-based bank said today it has "now covered the risk resulting from the unauthorised trading" and its equities business "is again operating normally within its previously defined risk limits."<br /><br />UBS also confirmed for the first time that the trader, 31-year-old Kweku Adoboli, was already under investigation by the bank when he revealed his actions to authorities Wednesday.<br /><br />"The loss resulted from unauthorised speculative trading in various S&P 500, DAX, and EuroStoxx index futures over the last three months," UBS said, adding that the magnitude of the bank's risk exposure was hidden by fake trades.<br /><br />Adoboli remains in custody in London, charged Friday with acts of fraud and false accounting dating back to 2008. His next court appearance is Thursday.<br /><br />The fact that the fraud took place over three years raises serious questions about the bank's ability to manage its risk. UBS said it has set up a special committee chaired by David Sidwell, the bank's senior independent director, to investigate the incident.<br /><br />Speaking for the first time since UBS revealed the loss, Gruebel told the Swiss weekly Der Sonntag that the loss couldn't have been prevented.</p>