CPreports 11/20/12 – Judge is Saving Twinkies, Kweku Adoboli found guilty, Credit Suisse Suit


CPreports 11/20/12 – Judge is Saving Twinkies, Kweku Adoboli found guilty, Credit Suisse Suit

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    Ex-UBS trader Kweku Adoboli was found guilty today of one count of fraud, related to a loss of $2.3 billion. The Ghanaian-born former public schoolboy exceeded his trading limits, but failed to hedge trades. He was faking records instead, to cover his tracks. To explain his actions, he claimed that he was pressured by staff to take more risks, culminating in bad trades which erased almost 4.5 billion dollars off the bank’s share value, when they were discovered. IN his defence Adoboli claimed, that senior management encouraged more risk taking, until they would get a slap on the wrist, and that he simply lost control in the financial crisis. A classic case of not enough check points at banks, and uncontrollable greed that trickled down from senior management down to the lower ranks. Or was Adoboli really just a rogue trader?

    And speaking of naughty Swiss Banks, we hear that Credit Suisse will have to go to court soon right here in New York, as New York attorney-general, is preparing to file a civil lawsuit against Credit Suisse, for misleading investors who lost billions of dollars on mortgage-backed securities. The lawsuit is related to Credit Suisse misrepresenting the quality of loans packaged in securities, which led to a combined loss of over $11.2 billion for its investors. Let’s see if Credit Suisse put enough money aside for possible mega fines.

    Turns out it’s not that easy to kill a Twinkie even if you wanted to. In an attempt to save more than 18,000 jobs, a bankruptcy judge surprised Hostess Brands Inc. and its warring union, by delaying the company’s bid to close its 85-year-old bakery business and sell off its factories, brands and other assets. Instead, Judge Robert Drain asked both sides to join him Tuesday for a mediation session where he will try to broker a new contract…only if that fails, will the company be allowed to move ahead with its original plan. The judge’s decision to lead mediation talks apparently rests on his wish to save the 18,000 jobs in question, we at Corporate Profile however strongly believe, that he’s secretly a Twinkies fan, just like we are.

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