These days, it’s not a Wall Street scandal unless some embarrassing instant messages or e-mails are made public for all to see. That time has come in the case of alleged UBS rogue trader Kweku Adoboli.
Reuters’ Estelle Shirbon reports that, during his trial, the prosecution revealed an instant message conversation between Adoboli and a colleague. Adoboli said he had an emotional week of trading, and his colleague, Darren Bailey, responded:
“Have you used the slush acct (account)?”
The prosecution will argue that the “slush acct” was a reserve account to hide Adoboli’s trading losses. They also allege that Adoboli had a hidden trading book, or umbrella, that was run by Bailey.
Bailey was on the stand when this conversation was revealed, and he responded, “I am genuinely shocked by this. I don’t know what the context to that could have been. I am genuinely surprised.”
He also said that it was “ridiculous” that he ran a hidden trading book that was the template for Adoboli’s “umbrella” account, as Adobli’s lawyers insisted, Reuters reports.