UBS trader makes £1.3bn loss on unauthorised trade

Swiss bank UBS says it has discovered an unauthorised trade by one of its traders in its investment banks which could result in a £1.3bn loss.

“It is possible that this could lead UBS to report a loss for the third quarter of 2011. No client positions were affected,” the bank said in a brief statement just before the stock market opened.

No customer accounts were affected, the Zurich and Basel-based banking group added.

UBS shares fell 7 per cent in early trades.