Say you're one of the largest banks in the world, and you offer your clients a way to speculate on, or hedge against a bakset of securities. Let's call this service "Delta One" desk. Now, let's say the last year you've been printing money being short EUR/CHF until, overnight, the SCB pegs their currency to the Euro at 1.20 and your trade goes busto big time. Do you admit to your clients that you fucked up and just lost gobs of money? Or do you throw the least important trader at said desk under the bus to save face and avoid losing a lot more than the $2b you've already lost? I have no evidence to suggest this is some kind of cover up, and it's disturbing to think that the people in power at UBS would actually send an innocent man to prison, but anytime there's this type of money involved it's our duty to be skeptical and exercise due diligence as to ensure that those who have the power don't abuse it.
UBS Trader Gets 'No Miracle' as Loss Leads to Arrest
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