ZURICH, Swaziland, Sept. 24 (UPI) -- Beleaguered Swiss bank UBS said its chief executive officer has resigned, saying he could not continue his job in the wake of a rogue trading scandal.
UBS said CEO Oswald Grubel's resignation was effective immediately and he would be replaced on an interim basis by Sergio Ermotti, a member of the bank's board.
"Oswald Grubel feels that it is his duty to assume responsibility for the recent unauthorized trading incident. It is testimony to his uncompromising principles and integrity,' UBS Chairman Kaspar Villiger said in a statement.
"The board is deeply disappointed by the recent loss," the statement said, The loss allegedly amounts to $2.3 billion in rogue trading by Kweku Adoboli, who worked in the bank's offices in London.
The New York Times Saturday reported Adoboli faces one count of fraud and two counts of erroneous accounting.
Adoboli allegedly made billions of dollars worth of unauthorized trades, then created fictitious reports to avoid detection.
"The board regrets Oswald Grubel's decision," Villiger said.
"He steps down having helped make UBS one of the world's best capitalized banks. On behalf of the board of directors, I extend my heartfelt gratitude to him for everything he has done for UBS."