21:22
Ratón the bull at a festival in Sueca, Spain. Photograph: Alberto Saiz/AP
Friday, 23 September 2011
It is the end of a long career, deemed venerable by those who admire Spanish fighting bulls.
In the early hours of Sunday morning, the half-tonne 11-year-old killer bull known as Ratón, or Mouse, will feel a bullring's sand under his hooves and sniff the scent of commingled human adrenaline and fear for the last time.
Those who pay their €2.50 (£2.20) in Canals, eastern Spain, will witness the final chapter of a life spent chasing, and occasionally goring, people. Fans are expected to arrive from around the country.
Many will be secretly hoping Ratón, who has killed two and reportedly gored five others in his career, will draw blood at his valedictory outing in the small town near Valencia. A fiesta poster promises "a show with the presence of the famous Ratón" starting at 12.30am. It does not mention that Ratón killed a spectator in nearby Xátiva last month and another man in 2008.
Canals mayor, Ricardo Cardona, claims to have been unaware of Ratón's bloody past when hiring him. He has asked the bull's owner, Gregorio de Jesús, to prevent members of the public coming face to face with the beast.
Four professional recortadores, or bull-taunters, will instead dodge in front of him in the bullring, encouraging him to chase them over obstacles for up to half an hour.
"It is when someone jumps in spontaneously that things inevitably happen," De Jesús said this month.
Police and security staff will try to prevent enthusiastic amateurs jumping into the ring with Spain's most infamous bull.
The future of Ratón, who is past retirement age, remains uncertain. De Jesús wants to clone the bull but is waiting to hear if he will receive local government funds to pay for it.
Thursday, 22 September 2011
U.S. deep-sea explorers must turn over to the Spanish government 17 tons of silver coins and other treasure recovered from a sunken Spanish galleon in 2007, a federal appeals court ruled Wednesday. But Tampa, Fla.-based Odyssey Marine Exploration has vowed to continue the protracted legal battle over the cache, which could be worth as much as $500 million. In a statement Wednesday, the company said it would take the next step in the appeals process, requesting a hearing before all the judges of the 11th Circuit Circuit Court of Appeals. That came after a three-judge panel of the 11th Circuit had issued its ruling in a case that could case spill over to treasure hunts for years to come. "We are certainly disappointed by the 11th Circuit's ruling," said Melinda MacConnel, Odyssey's vice president and general counsel. "We believe the U.S. Constitution and all other applicable laws give jurisdiction to the U.S. courts to determine the rights of Odyssey, Spain and all other claimants in this case." Attorneys for Odyssey asked the three-judge panel to overturn a lower court ruling and uphold the "finders keepers" rule that would give the treasure hunters the rights to coins, copper ingots, gold cufflinks and other artifacts salvaged in April 2007 from the galleon found off the coast of Portugal. Spain's lawyers countered that U.S. courts are obligated by international treaty and maritime law to uphold Spain's claim to the haul. The ship, called the Nuestra Senora de las Mercedes, was sunk by British warships in the Atlantic in 1804 while sailing back from South America with more than 200 people on board. Odyssey created an international splash in May 2007 when it announced that it had recovered more than 500,000 silver coins and other artifacts from the wreck and flew the treasure back to Tampa. Spain went to the U.S. District Court in Tampa, where the company is based, claiming ownership. Odyssey disputed the Spanish government's ownership of the valuable cargo. James Goold, a Washington attorney who represented the Spanish government in court, called the appeals court decision "a complete and much-deserved victory." "The court recognized that stripping the sunken Spanish ship of coins to sell to collectors is no more appropriate than to do that to the USS Arizona in Pearl Harbor," Goold said. "We are pleased and gratified that the court recognized U.S. obligations under international law, just as Spain respects the sanctity of sunken U.S. Navy ships." A federal judge sided with Spain in the first round of the tug-of-war in June 2009, accepting the Spanish government's argument that it never surrendered ownership of the ship and its contents. Attorneys argued the case before the 11th Circuit panel in May. Odyssey had argued that the wreck was never positively identified as the Nuestra Senora de las Mercedes. And if it was that vessel, then the ship was on a commercial trade trip — not a sovereign mission — at the time it sank, meaning Spain would have no firm claim to the booty. International treaties generally hold that warships sunk in battle are protected from treasure seekers.
LA TASCA RESTAURANTS LTD IS RE-LAUNCHING THEIR 65 STRONG CHAIN THROUGH THE NEW CONCEPT LA TASCA SPANISH TAPAS BAR & KITCHEN. The first to see the change were Windsor and Leeds, which have had the complete overhaul into the new concept. The change is set to bring a more contemporary, sincere approach to the brand and deliver a fresh new menu, which has halved in size and is sourced from Spain where possible to enhance provenance. La Tascas' customers remain a central focus for the future of the business, Simon Wilkinson CEO said: "We want to keep our current customer base but attract plenty of new ones too, it's been a frantic but very exciting few months, and we can't wait to roll out another six before Christmas for people to enjoy." The change also brings an innovative approach to its people within the business, focusing on a new training programme, recognition and reward and re-instating the value of being part of the La Tasca family. David Pepper, people director said: "People are the core cog of the business and drive every aspect of its success. Implementation of innovative training with flow, a new training manager and people development strategy in place are just the beginning of what we want to do for our 'family' at La Tasca." Today a new website launched as part of the evolvement of the brand, allowing customers to engage more via social media, enhance the online guest experience with a simplified booking system and new features in the form of a customer gallery, what's on and a bigger focus on careers for the business. This innovative approach brings the people and its customers back to the heart of the business and both Windsor and Leeds restaurants have been a test bed of which the successful elements will appear next in Glasgow, St Martins Lane- London and Bluewater. La Tasca Restauarants became a private company in March and is operated by CEO Simon Wilkinson. Prior to this the company had 3 previous owners including most recently Bay Restaurant Group, which is now Stonegate Plc. The first La Tasca opened in 1993 in Manchester and now has 65 UK restaurants spread over all regions and five in the USA and aims to double its estate in the next three years.
Caja de Ahorros del Mediterraneo (CAM), a Spanish savings bank seized by the Bank of Spain, said more than half of its loans for property development were in default. Of 12.7 billion euros ($17.2 billion) lent to developers, 6.4 billion euros were classed as doubtful, the lender said in explanatory notes to its first-half earnings published late yesterday. Another 1.3 billion euros of those loans were classed as “substandard,” the lender said. The Bank of Spain is looking for a buyer for CAM, which was seized in July. It posted a 1.14 billion-euro first-half loss as its default ratio more than doubled to 19 percent since December. Selling the stricken lender is a priority for the regulator as it seeks to bolster confidence in a banking industry pummeled by defaulted loans to developers. Auditors KPMG said yesterday that the bank’s viability depends on the success of a plan put together by the government’s rescue fund. The Alicante-based lender said 5.4 percent of its 1.1 billion euros of mortgage loans to individuals were in default. Property development and business-services loans accounted for 29 percent of its loan book, the lender said.
Wednesday, 21 September 2011
Al Faisal Holding Company, one of Qatar’s largest conglomerates, said on Wednesday it was behind the purchase of a top London hotel. Through its subsidiary Al Rayan Tourism & Investment Company (ARTIC), it said it has exchanged contracts with Northern Irish developer McAleer & Rushe to acquire the W London Hotel, Leicester Square for close to £200m ($313m). Launched in January, the Starwood-operated 192-bedroom hotel is on the corner of Leicester Square, the internationally famous and highly popular pedestrianised square of London’s West End. In addition to the hotel, the ten-storey, 90ft glazed building houses one of the most exclusive branded apartment schemes in London, featuring 11 luxury duplex branded W Residencies. The development is also home to Mars’ 35,000 sq ft M&M’s World store, the first in Europe.
Ernest Hemingway’s final visits to Spain are remembered at a new exhibition in Rioja. However, the exhibition does not focus solely on Hemingway’s visit to Paternina in 1956. Making use of never-before-seen photographs and working with the Hemingway family, Paternina’s exhibition is more of a look at Hemingway’s association with Spain in the final years of his life. Greater attention is given to his passions for wine in general, bullfighting, writing, fiestas and good company. Carlos Eguizábal, CEO of Paternina, spoke to the drinks business at the opening ceremony in Ollauri. “We felt the exhibition was appropriate because of his relationship with wine and Rioja in general,” he said. “There is a connection between wine, culture, bullfighting and literature which Rioja encapsulates and which underpinned his love of Rioja and Paternina. It’s a celebration of his life.” Hemingway’s daughter-in-law Valerie and grandson John were also at the opening of the exhibition and Valerie tolddb about the author and his connections with wine. “He was always looking for what was good,” she said. “Not always the best but what he could enjoy. He didn’t follow trends or labels or vintages but wine was part of the fabric of his life.” As for his reputation as a heavy drinker (and at worst a drunk), Valerie countered: “He was very disciplined with his drinking and never drank because he ‘needed’ the drink. He would also never write after drinking, saying: ‘Anything you write after drinking is worthless’.” Much of the exhibition centres on Hemingway’s return to the bullfights between 1956 and 1960. His visit to Paternina in 1956 coincided with the coming of age of Antonio Ordóñez son of the bullfighter Cayetano Ordóñez also a friend of Hemingway and model for the character Pedro Romero in The Sun also Rises. Antonio was on a tour of the Basque country and Rioja in 1956 and Hemingway followed his fights in cities such as Bilbao, Pamplona, Haro, Logroño and Calahorra. It was on this trip that the two of them visited Paternina and a great many of the unseen photographs in the exhibition show the pair being shown around the cellars – and tasting wine. Hemingway would follow Antonio on subsequent returns to Spain between 1956 and 1960. These, along with the mano a mano contest between Antonio and his great rival and brother-in-law Luis Miguel Dominguín in 1959, formed the basis of Hemingway’s last series of articles for Life magazine, The Dangerous Summer. To help commemorate the event, Paternina’s winemaker Carlos Estecha has designed a special edition label for the 2006 Conde de los Andes reserva. The exhibition runs from Tuesday to Sunday – with more limited opening times on Sunday – until 15 April 2012. Admission with a tasting is €3, €2 for over 65s and under 18s and free for under 14s.
Hosted and created by Bodegas Paternina at its Conde de los Andes winery in Ollauri, the exhibition entitled “Tinta, Sangre y Vino” – “Ink, Blood and Wine” – celebrates the writer’s visit to the winery 55 years ago and marks 50 years since his death.
Emilio Botín is a billionaire Spanish banker renowned for running a tight ship. He asks that his top credit officers at Santander — one of Europe’s largest banks — make a trek to his vacation home each summer to report on loan exposures. And he queries the head of his charitable foundation, euro for euro, on its smallest donations. Enlarge This Image Daniel Ochoa De Olza/Associated Press A Spanish court is investigating whether the family of Emilio Botín, the head of Banco Santander, paid too little taxes. Add to Portfolio HSBC Holdings PLC Barclays PLC Go to your Portfolio » Enlarge This Image Nacho Cubero/Reuters Emilio Botín is head of Banco Santander, which is based in Madrid. Readers’ Comments Share your thoughts. Post a Comment » Read All Comments (30) » Yet, there is one not-so-small matter that Mr. Botín (pronounced bo-TEEN) has failed to keep tabs on: a Swiss bank account secretly opened long ago by his father that grew to such a size that when Spanish authorities discovered its existence last year, Mr. Botín and other family members paid 200 million euros (about $273 million currently) in taxes to avoid tax evasion charges. At the request of tax fraud inspectors, a Spanish national court is investigating whether the payment is enough, given the amount that was stashed abroad; tax experts in Spain say that the account could reach two billion euros. The court has also said that officials need more time to sift through the blizzard of documents that the family submitted and will consider whether a criminal charge of document fraud should be brought. A lawyer for the Botíns, Jesús Remón, said the family was cooperating with the investigation and was “fully in compliance with its tax obligations following their voluntary filing” last year. He added that no family member had been charged with wrongdoing. Mr. Botín’s tax problems come as debate intensifies over whether struggling governments should demand more tax revenue from the rich. On Monday, President Obama called to end some tax breaks for the wealthiest taxpayers in the United States. Last Friday, the Spanish government reintroduced a wealth tax that it had abolished three years earlier, hoping to collect an estimated 1.08 billion euros from taxpayers with more than 700,000 euros in declared assets. Spain’s wealthiest have so far not publicly endorsed calls for higher taxes, and Mr. Botín on Friday told reporters that “it seems to me very bad to reintroduce” the wealth tax. More so than in other European countries, where bankers are largely anonymous figures, Mr. Botín holds sway in Spain. Although he avoids social events and his public utterances are few, his influence is seen as wide-ranging. And he has been able to retain control of Santander despite his family’s controlling just 2 percent of its shares. Neither the judiciary nor the family has provided details about how much money the Swiss bank account contained or how the amount grew over time. Nor would Mr. Remón, the lawyer, comment on whether Mr. Botín had been aware of the account. What is known is that Mr. Botín’s father, also called Emilio, left Spain with part of his wealth in late 1936, after the start of the Spanish Civil War, fearing, like many other Spaniards, what might come. The elder Mr. Botín spent a few months in London before moving to Basel, Switzerland, and eventually returning to Spain to resume leadership of the bank that he had run since 1933. But while he returned to Spain, the money he salted away in Switzerland did not. The senior Botín died in 1993. Last year, the French government passed on to Spain data that it had obtained from Hervé Falciani, a former employee in HSBC’s Swiss subsidiary, naming almost 600 Spanish holders of secret bank accounts. Among those was one belonging to the estate of Mr. Botín’s father. In his opening summary, the judge in charge of the case, Fernando Andreu, highlighted “the complexity of the hereditary structures” of trusts, foundations and other companies set up to oversee the account. The closest he came to explaining what was in the account was to say that it also included a 12 percent stake in Bankinter, a midsize bank in which Jaime Botín, Emilio’s brother, is a leading shareholder. That holding, at current stock market value, would be worth about $310 million.
Cheryl Cole was all smiles at the Olivier National Theatre in London on Monday night, where the ousted X Factor judge was celebrating her newest venture -- fabulous footwear! To celebrate her partnership with U.K. fashion website, Stylistpick.com, the 28-year-old Brit showed off her amazing figure through the sexy cutouts in her scarlet mini dress. She styled her hair into a voluminous bouffant accessorized with a gold headband and sported smoky eye makeup. The stylish star finished off her look with a pair of sparkling, sky-high heels. But despite their fabulous appearance, weren't such a walk in the park. "Girls..Don't you just love taking your foot out of a heel and into your slippers..The best! Feels like my feet are having a cuddle.. X," the Girls Aloud singer tweeted after the event. Cole's limited-edition footwear collection is due to hit stores in December just in time for the holiday season. "Cheryl is the style icon and is amazingly warm -- a quality that has made her the nation's sweetheart," Stylistpick's CEO, Juliet Warkentin, said. "We believe that the launch will have a huge fashion impact, establishing fashion's greatest influencer as a major force in fashion design." Cole will also curate her own picks on the site as well as give style tips to users.
Credit: Mike Marsland/WireImage.com
Tuesday, 20 September 2011
GEORGIA Salpa was flying out to Marbella today to get over Calum Best -- just as the infamous bad boy was landing in Ireland for the week. The half-Greek model is taking some time out from the spotlight and relaxing with her Celebrity Salon co-star Aisleyne Horgan-Wallace. A source said Georgia (26) really needed this break to clear her head. "Georgia needs to take time to sort her head out and finally decide what she wants," the source said. "Georgia will be staying in Spain for about a week. At the same time Calum is in Dublin for a few days doing some promotions so thankfully there will be no awkward meetings." Even though it looks like the top model is looking to start afresh, a close pal says going to Marbella may bring back some old memories of her relationship with Calum. "The last time she holidayed in Marbella she bumped into Calum, it was right after they filmed Celebrity Salon, so the visit might stir up some old memories. Either way she needs some time to relax in the sun." Rift This isn't the first time AR model Georgia has jetted out of the country after a break-up. Last year the model headed to Spain with pals Daniella Moyles, Leah O'Reilly and Emily Mackeogh when she split with DJ Barry O'Brien. This was the same trip that apparently caused a rift between Georgia and her former best pal Nadia Forde.
British man has broken his hip in yet another case of ‘balconing’ on the Baleares. The 29 year old, who was said to be very drunk, fell from the first floor of his hotel when trying to cross to the neighbouring balcony. It was a fall of some 3 metres and happened in Avenida Isidor Macabich in Sant Antoni. He was taken to the Can Misses Hospital where he is expected to stay for a few days. The Guardia Civil is in charge of the investigation, although the Local Police also attended the incident.
Some 1,200 people were evacuated overnight as their homes in the Roca Llisa urbanisation in the town of Santa Eulàra des Riu were threatened by the fire. The fire was declared at 8pm on Sunday afternoon in Cala Llonga, but given the size of the blaze in the early hours of Monday, 16 men from the Emergency Military Units UME were scrambled to the scene to reinforce the fire crews already working. They arrived on the island overnight on two helicopters. 160 fire fighters brought the fire under control on Monday morning, and there are no reports of any injuries. A total of 115 hectares were affected. In a separate incident a fire at Marratxí on Mallorca has affected some 5 hectares and is now also under control.
Washington: Looks like Charlie Sheen is close to settling his 100-million-dollars legal dispute with Warner Bros. over his firing from the hit sitcom ‘Two and a Half Men’.
A person familiar with the talks, has revealed that the studio is wrapping up a deal to end the litigation.
According to The Los Angeles Times, Sheen is expected to receive about 25 million dollars from the Hollywood studio. The figure represents Sheen’s participation in profits from the show.
Meanwhile, a spokesman for Warner Bros. denied there is a settlement and declined to comment further.
According to The Los Angeles Times, Sheen is expected to receive about 25 million dollars from the Hollywood studio. The figure represents Sheen’s participation in profits from the show.
Meanwhile, a spokesman for Warner Bros. denied there is a settlement and declined to comment further.
Monday, 19 September 2011
The Home Office has said it is considering the possibility of not displaying gender on passports. The proposals follow changes to Australian passport rules, which mean that intersex people who identify as neither gender can be listed as ‘X’, rather than having to choose between male or female. A Home Office spokesman said: “We are exploring with international partners and relevant stakeholders the security implications of gender not being displayed on the passport.” Currently, transgender people can obtain passports in their new gender. But intersex people – those born with chromosomal or genital ambiguity – must pick whether they are male or female. Supporters of gender-neutral passports say there is little need for passports to list gender and argue that other forms of ID do not state the information. Intersex rights campaigner Jennie Kermode told PinkNews.co.uk last week that the change would be easy to implement. She said: “The passport offices in the UK will not issue passports with the ‘X’ option now, although they could do so without, as I understand it, any necessary change in UK laws.” Another campaigner, Jane Fae, said: “The issue of documenting gender goes much wider than the ‘feelings of trans and intersect people’. In fact many in the trans community would oppose the removal of gender as its inclusion on passports is vital to ensure safety when travelling abroad. “Many non-trans individuals would be happier not declaring gender for all sorts of reasons. It should be optional for all.”
Located on the Southern Spanish Costa del Sol, in the heart of the 'Golden Mile' only 5 minutes to Old Town Marbella and Puerto Banús, with 320 days of sunshine and a mild year round average temperature of 21ºC). Open year round, the renowned Marbella Club Hotel, was once the private residence of Prince Alfonso von Hohenlohe. The 121 luxury bedrooms and suites, spread over the beach front resort, harmonize with 14 Andalusian-Style villas throughout 42,000 square meters (452,083 sq. ft.) of lush subtropical gardens. Each guest room is decorated with the finest fabrics and Mediterranean interior design, reflecting the surrounding elements and has furnished balcony / terrace and spacious luxurious bathrooms with separate shower and bath. The 14 charming villas are in the unmistakable style of the Hotel, faithful replicas of traditional Andalucían architecture, blending harmoniously with their surroundings, and are ideal for families and guests seeking to enjoy more space and privacy. The 2, 3 or 5 bedroom villas have their own private garden and heated pool, providing guests with both comfort and privacy during their stay. Both of the 2 outdoor heated swimming pools, one with seawater invite you to relax in the surrounding gardens or to enjoy the views of the Mediterranean through the palm trees of the famous beach club.
Even celebrities are having a hard time selling their mega-mansions. More on DIS Fan Cam: The Next Sports Cash Machine?Jay Rasulo, Senior Executive Vice President And Chief Financial Officer, The Walt Disney Company, To Speak At The Goldman Sachs 20th Annual Communacopia ConferenceBond Funds See Huge Spike in Inflows Market Activity The Walt Disney Co| DIS Mommy-to-be Hillary Duff has put her first mansion that she purchased while starring in Disney's Lizzie McGuire up for sale with an asking price of $6.25 million. But according to The Real Estalker, Duff also attempted to sell the estate last year, listing for $7 million last time around. Real estate records reveal Duff bought the 9,277 square-foot house in Toluca Lake, Calif., in March 2004 for $3.5 million. Mark Wahlberg, a.k.a. Marky Mark, also recently re-listed his Beverly Hills estate with a $2 million price cut. Wahlberg originally listed the property in 2008 for $15.9 million. The 1.41-acre home is now listed for $13.9 million. The executive producer of Entourage purchased the mansion in 2001 for just $5 million, later remodeling it. Earlier in the summer, Christina Aguilera reduced the price on her home in the Hollywood Hills to $5.5 million from $8 million, while Jodi Foster's Beverly Hills mansion was brought down to $8.9 million from $10 million. The housing market continues to wobble with few consumers taking advantage of record-low mortgage rates. Sales of newly built homes are expected to be at their worst levels for decades this year, while sales of previously occupied homes are on pace for their poorest showing in nearly 15 years
One aspect of a plan to restore wealth tax in Spain makes no sense but there's nothing the government can do about it, the finance minister said Saturday. Elena Salgado spoke from Poland where she was attending a meeting of euro zone counterparts. The tax stems from the central, Socialist government but is collected by regional administrations. It was suspended in 2008 to stimulate growth as the global economic crisis started to bite in Spain. But the Madrid government has kept compensating regional governments for the lost revenue. Now, regions stand to get the money twice: once from high-earning taxpayers under a decree passed Friday and again from the central government because the compensation must continue under a separate law that has a higher status than a decree. Salgado said "this does not seem reasonable" but there's no way around it. "With a decree, there is nothing you can do to avoid it," she said. Her comments were the latest in a sea of confusing government statements about the wealth tax, which is levy on a person's net worth: assets minus debts. The flip-flops concerned the wealth level at which it will kick in and how much revenue it will raise. In the end, if passed by Parliament next week, the levy will apply to taxpayers' net worth above euro700,000 ($963,000), or an estimated 160,000 people, and raise euro2 billion in revenue. It is temporary, and will be in effect only in 2011 and 2012. The government says the tax is aimed at getting richer people to chip in more as Spain struggles with a 21 percent jobless rate, anemic growth and a high deficit. But it has been criticized by the conservative opposition as a populist nod to leftist voters angry over deficit-cutting austerity measures as Nov. 20 general elections approach. The ruling Socialists are projected to lose badly. Salgado's remarks seemed to contradict some made just Friday by government spokesman Jose Blanco, who said no region would get the wealth tax money twice. Salgado said Blanco really meant the same thing she did: that it seems unreasonable for regions to get the money doubly.
The Bank of Spain has promised to cover up to 20 billion euros ($27 billion) in losses at Caja Mediterraneo as it seeks to offload the troubled savings bank, a newspaper said Monday. The Bank of Spain took control of the bank in July and is now trying to sell it off. According to the daily El Mundo, the central bank let investors know it would cover up to 20 billion euros of losses, the estimated amount of property-related assets at risk in Caja Mediterraneo (CAM), if necessary. If confirmed, the central bank intervention would be "the costliest for the public treasury in Spanish financial sector history," the newspaper said, without identifying its source. The price tag could unnerve financial markets -- it is equal to a government estimate of the maximum cost of recapitalising Spain's entire banking sector. Contacted by AFP, Bank of Spain officials were unable to respond immediately to the report. The Bank of Spain injected 2.8 billion euros and opened a three-billion-euro line of credit for the CAM when it took control of the institution in July. But in early September CAM revealed a first-half loss of 1.136 billion euros and a high 19-percent ratio of bad loans, mostly property-related credits whose recovery was doubtful. The average bad loan ratio for the Spanish banking sector was 6.416 percent in June. According to El Mundo, the Bank of Spain is trying to complete the sale before general elections set for November 20. It said rival banks Santander, BBVA and CaixaBank, as well as a union of three Basque banks, were among candidates to buy the CAM, with Santander the favourite.
Sunday, 18 September 2011
Swiss bank UBS on Sunday increased the amount it said it had lost on rogue equity trades to $2.3 billion and alleged a trader concealed his risky deals by creating fictitious hedging positions in internal systems. UBS stunned markets on Thursday when it announced unauthorised trades had lost it some $2 billion. London trader Kweku Adoboli was charged on Friday with fraud and false accounting dating back to 2008. "The loss resulted from unauthorised speculative trading in various S&P 500, DAX, and EuroStoxx index futures over the last three months," UBS said in a brief statement. "The loss arising from this matter is $2.3 billion. As previously stated, no client positions were affected." Global stock markets have been extremely volatile in recent months, plunging on concerns over euro zone and U.S. debt crises and then rebounding on hopes for their resolution. The loss is a disaster for the reputation of Switzerland's biggest bank, which had just started to recover after it almost collapsed during the financial crisis and faced a damaging U.S. investigation into aiding wealthy Americans to dodge taxes. "Loss even more. Reads like they're making excuses," said Helvea analyst Peter Thorne of the UBS statement. The new scandal has prompted calls for its top managers to step down and for its investment bank to be split into a separate unit from its core wealth management business. Chief Executive Oswald Gruebel, who was brought out of retirement in 2009 to turn the bank around, was quoted in a newspaper on Sunday as saying he is not considering quitting over the crisis, but said it was up to the board to decide. In a memo to staff on Sunday, he said: "Ultimately, the buck stops with me. I and the rest of senior management are responsible for dealing with wrongdoing." Swiss newspapers quoted unnamed insiders as saying the UBS board and important shareholders such as the Singapore sovereign wealth fund were still backing Gruebel, with immediate changes at the top the last thing the bank needed. Gruebel is widely expected to present plans to drastically cut back the investment bank at an investor day in November. INDEPENDENT INVESTIGATION The bank, whose three keys logo symbolise "confidence, security, discretion," has pulled its "We will not rest" global advertising campaign for now, that was designed by advertising agency Publicis to try to rebuild its image. Meanwhile, UBS client advisers have been writing to customers to reassure them of the underlying financial strength of the bank despite the trading loss, a spokesman said. "That we now suffer this setback at this point in our efforts to improve our reputation is very disappointing. This incident also sets us back somewhat in our capital-building efforts," Gruebel said in his memo. "However, I wish to remind you that our fundamental strengths as a firm remain intact... we remain one of the best capitalized banks in the industry. UBS said its board of directors had set up a committee chaired by independent director David Sidwell, former chief financial officer at Morgan Stanley, to conduct an independent investigation into the trades and the bank's control systems. The bank said it had covered the risk resulting from the unauthorised trades, and its equities business was again operating normally within previously defined risk limits. It said the trader had allegedly concealed the fact his trades violated UBS risk limits by executing fake exchange-traded fund (ETFs) positions. "Following inquiries directed to him by UBS control functions that were reviewing his positions, the trader revealed his unauthorised activity," the bank said. "The positions taken were within the normal business flow of a large global equity trading house as part of a properly hedged portfolio," UBS said. "However, the true magnitude of the risk exposure was distorted because the positions had been offset in our systems with fictitious, forward-settling, cash ETF positions." The Sunday Times cited unnamed insiders saying the trader placed bets worth $10 billion before his losses were detected. ETFs are index funds listed on an exchange and can be traded just like regular stocks. They try to replicate index performances and offer lower costs than actively managed funds, but regulators have warned about risks from some complex ETFs. In the past three months, DAX futures have fallen 22 percent, Eurostoxx 50 futures have dropped 20 percent and S&P 500 futures have dipped 4 percent. The instruments involved in the UBS case are similar to those that Jerome Kerviel, the rogue trader at Societe Generale, traded when he racked up a $6.7 billion loss in unauthorised deals in 2008. Christoph Blocher, vice-president of the right-wing Swiss People's Party (SVP) -- the country's biggest -- renewed his calls for a splitting off of the investment bank. "One has to seriously examine a ban on investment banking for commercial banks," he told the SonntagsZeitung, adding his party might team up with the center-left Social Democrats to push for such a move.
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