UBS said on Thursday that a “rogue trader” had “lost” $2 billion in “unauthorized trading.” That’s what they say in the press release. The police report is probably more blunt. A 31-year-old UBS trader has reportedly been arrested for fraud.

According to the New York Times’ DealBook blog:

The incident raises questions about the bank’s management and risk policies at time when it is trying to rebuild its operations and bolster its flagging client base. The case could also bolster the efforts of regulators who have been pushing in some countries to separate trading from private banking and other less risky businesses.

That’s the understatement of the day.

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