UBS: Unauthorized Trading Loss Is $2.3 Billion - Wall Street Journal

BY DANA CIMILLUCA, DEBORAH BALL AND CARRICK MOLLENKAMP

UBS AG boosted the tally of the loss it suffered from unauthorized trades to $2.3 billion, as details began to emerge to explain how relatively small losses allegedly caused by a junior trader on one of its desks in London snowballed into one of the largest trading frauds ever.

The details and new information emerging Sunday, however, pointed to a new and troubling problem: Even though the bank blamed a rogue trader, some inside the firm knew enough to question his trading fairly early on in the alleged scheme, according to a person familiar with the situation.

In its first ...