01/08/2016 World Business Report


01/08/2016

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A gamble or two away from destroying Switzerland's largest bank.

:00:00.:00:21.

In his first ever TV interview, the former UBS trader convicted

:00:22.:00:24.

of fraud tells the BBC it could happen again.

:00:25.:00:34.

A new law in Malaysia gives this man - the Prime Minister -

:00:35.:00:38.

sweeping new powers to crack down on basically anything he wants.

:00:39.:00:41.

Problem is his critics fear it might be used to silence

:00:42.:00:43.

If you are joining us for the first time, this is a bite shot of what is

:00:44.:01:04.

going on in business. In a minute we'll have reaction

:01:05.:01:05.

to last Friday's stress tests Kweku Adoboli the former UBS trader

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convicted of fraud has told the BBC, in an exclusive first broadcast

:01:09.:01:19.

interview that the culture of profit "no matter what" in banking

:01:20.:01:22.

has not changed. The 36 year-old's unauthorised

:01:23.:01:29.

trading lost the Swiss bank $2.2bn and in 2012 and he was sentenced

:01:30.:01:31.

to seven years jail on two Let's just have a quick look

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at the details of the case. Mr Adoboli became a junior trader

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at just 25 and by the age of 27 he was part of a team,

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responsible for $50bn in assets. He claimed in court he had "lost

:01:47.:01:54.

control" of his trades but the prosecution said his actions

:01:55.:01:57.

amounted to fraud, pure and simple. His actions cost fellow

:01:58.:02:03.

traders their jobs, prompted the resignation of the Chief

:02:04.:02:06.

Executive and wiped $4.5bn from the UBS share price.It

:02:07.:02:13.

was the largest trading loss in British banking history

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and the prosecution said that he was only "a gamble or two

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away from destroying Mr Adoboli is a Ghanaian national

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and because he was sentenced to more than four years in prison

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he is automatically Last month he lost his appeal

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against being deported from the UK Speaking to the BBC's

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Economics Editor Kamal Ahmed in his first ever TV interview

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he was asked if he should I have apologised and will continue

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to apologise. I am devastated, not for myself but for my institution

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and the people I worked with. The very first thing I did when I was

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arrested was that I was sorry. During my trial I said I was sorry

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repeatedly. These are not just devices, it is how I feel. I failed,

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I made mistakes. Do you think the culture has changed and that it

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could not happen again? Unfortunately, I have to say that

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the conversations I have had with people in the industry over the last

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year, through the conferences, the seminars I have been involved in,

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the young traders, the senior executives, everyone is still

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looking for a way to change culture within the industry. We still have

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so much work to do to get the finance industry in a position where

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it is trusted by society, where it is contributing consistently to help

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society move forward in a positive way. Has it changed enough in

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banking? Absolutely not. The young people I have spoken to, the former

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colleagues, are still struggling with the same issues, conflicts,

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pressures, to achieve no matter what. And the no where conflict

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goes? When conflict comes it is where people fall into this maze. It

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can happen again, absolutely, especially as we go into the next

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phase of the great financial crisis. Looking back now, do you think of

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yourself as a criminal? I do not think I am a criminal. It is a label

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I have. You made a terrible mistake. You made a sequence of terrible

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choices you'll intentions were always in the right place. I accept

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that I was found guilty of a crime that had dishonestly central to it.

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I was called a liar and I accept responsibility for what I was doing.

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Kweku Adoboli speaking for the very first time on television.

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Markets are expected to be digesting the results

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of European Banking Authority's stress tests that came out

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The tests to see how the continent's biggest banks would cope

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Investors are fretting about Italy's Banca Monte dei Paschi

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as well as the German giant Deutsche Bank.

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Of course, the global economic backdrop is getting gloomier: the US

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economy growing less than expected, a eurozone slowdown and investors

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are eyeing a slew of recent manufacturing numbers from China

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Lorenzo Codogno, Founder and Chief Economist,

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LC Macro Advisors, formerly Chief Economist of the Italian

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Good morning. Ranks for coming in. Very quickly, I mention of what the

:06:18.:06:34.

stress test was for but, as a layman, are they looking to see how

:06:35.:06:40.

much money they have in the vault? It is like a crash test. You make

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extreme assumptions on the economic environment and you look at what

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happens to the banks and whether there is any capital left. If they

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have any money left after this sort of scenario. Some British banks did

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not do very well, in particular RBS, but it seems to be the focus on the

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Italian banks. How much of a mess are they in? Before the test they

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would be concerns about the Italian backing sector, some concern about

:07:20.:07:23.

the German banking sector and some concern about systemic problems.

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Despite these concerns, the overall picture that emerges is a

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reassuring. In other words, there is some improvement. There are some

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critical issues. You might say, after so many years, why are we

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still discussing this... Eight is! Posted by an aide, the US banking

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system went through a huge cleanup and they are solid at the moment.

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The eurozone banks were less aggressive. That is my point. Eight

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years on, the eurozone is still in a mess. Well, you know, I think it is

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a mixed picture. The good news is that, again, very is in proven. I

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fully agree with you, we should have seen this improvement a long time

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ago but the system is gradually improving and it basically means

:08:23.:08:28.

there is no systemic risk that is really concerning financial markets

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at this stage say this is positive news. No major surprises is good

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news. We will end on the good news. Molte grazie! I fluid in every

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language! More fallout from the ongoing

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corruption scandal surrounding Malaysia's state

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investment fund, 1MDB. The fund was set up

:08:57.:08:57.

by Prime Minister Najib Razak in 2009, and was meant to turn

:08:58.:09:00.

Kuala Lumpur into a financial hub and boost the economy

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through strategic investments. The man in charge of investigating

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the Mr Najib's finances is reportedly stepping down due

:09:06.:09:07.

to political pressure. Abu Kassim Mohammed may leave his

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post more than two years early. Some critics suggest that Malaysia's

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new security laws are also partly aimed at containing the fallout

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from the 1MDB saga. Rico Hezon is in our

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Singpore bureau for us - what's the background

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to the 1MDB story? How did this corruption allegation

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come about? It started to attract negative attention in early 2015. It

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is famous for the $11 billion each owed to banks. It had seen a paper

:09:55.:10:01.

trail that allegedly traced 700 million US dollars from the fund to

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the Prime Minister's personal fund. The allegation has gone deeper with

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the US Justice Department looking for a lawsuit. Quickly, this new

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law, in 15 seconds, this new law gives the Prime Minister powers to

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do basically what he wants? That's right. Sweeping new powers. He said

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the legislation was necessary to conduct security areas where forces

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can be deployed and individual premises and vehicles can be

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searched without a warrant. Critics are expressing concern that it may

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lead to problems. That is it with World Business Report. I will be

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back to look at some of the newspapers from around the world.

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An Australian family living in the Scottish Highlands face

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deportation from tonight, despite a high profile campaign

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Kathryn Brain arrived with her husband and young son

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