File under unbelievable?
UBS Says Trading Losses Were Closer to $2.3 Billion - NYTimes.com:
“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, allegedly executed by the trader,” the UBS statement said. “These fictitious trades concealed the fact that the index futures trades violated UBS’s risk limits.”