Zurich-based bank, UBS is in the toilet after a very, very naughty little boy or girl engaged in a spot of skullduggerous, unauthorised, and apparently not entirely skillful trading. The cost? A cool $2 billion, and an additional drop of 10% in its share price over the course of today’s early trading alone. UBS had better clench its buttocks. This is going to be a wild ride.

Wiping back a deluge of tears, UBS released the following statement:

UBS has discovered a loss due to unauthorised trading by a trader in its investment bank. The matter is still being investigated, but UBS’s current estimate of the loss on the trades is in the range of $2bn. It is possible that this could lead UBS to report a loss for the third quarter of 2011.

The identity of the trader, as well as their geographic location, is as yet undetermined.

Don’t be tempted to dabble in unauthorised trading, kids. Tharr be dragons.

[Source : Guardian]