A London based rogue trader has cost Swiss Investment bank UBS $2 billion.
31 year old trader Kweku Adoboli was arrested early this morning
In a statement the police said: "A 31-year old man was arrested at 3.30am in central London on suspicion of fraud by abuse of position. He remains in custody."
The banks shares plunged nearly 10pc in Switzerland in response to the news.
In a statement the bank said: "UBS has discovered a loss due to unauthorised trading by a trader in its Investment bank.”
"The matter is still being investigated, but UBS's current estimate of the loss on the trades is in the range of $2bn."
The bank also stated they may make a loss for the third quarter because of the rogue trade.
The announcement is another major setback for the bank which had to be bailed out by the Swiss government in 2008 following huge losses on toxic assets relating to the sub prime disaster.