UBS rogue trader's supervisor sues for unfair dismissal, claiming racism
Former managing director alleges UBS discriminated against him because of race; bank says he failed to monitor risky trades
Ronald Greenidge, a former UBS AG managing director fired for gross misconduct in his supervision of convicted trader Kweku Adoboli, was suing the bank, claiming it treated him more harshly than others because he is black.
Greenidge, who was UBS's head of European cash trading, alleged race discrimination and unfair dismissal in a lawsuit filed in June at a London employment tribunal, according to newly obtained documents.
"There are stark discrepancies" between UBS's treatment of Greenidge and other people connected to Adoboli, according to the complaint. Greenidge "is of black Caribbean origin. Mr Adoboli is of black African origin. The claimant believes he has been treated less favourably than his" white counterparts.
Adoboli, originally from Ghana, was sentenced to seven years in prison on November 20 for fraud tied to a US$2.3 billion loss, the largest from unauthorised trading in UK history. The bank was later fined £29.7 million (HK$369 million) by a UK regulator for weaknesses in management systems and internal controls that allowed Adoboli to make risky trades.
At least 11 employees left Zurich-based UBS, either through firings or resignations, after Adoboli revealed the massive losses in an e-mail in September last year. They included former CEO Oswald Gruebel and Adoboli's co-workers on the exchange-traded funds desk - John Hughes, Simon Taylor and Christophe Bertrand.
The lawsuit was one of several against the bank for unfair dismissal because of the loss, at least one of which has settled. UBS spokesman Oliver Gadney declined to comment.