The investigation proceeds into how a rogue trader at UBS (NYSE:UBS) made unauthorized trades that resulted in $2.3 billion in losses. A London court has refused bail for Kweku Adoboli, the trader involved in the scandal.

In addition, the Financial Services Authority of Great Britain and the Swiss Financial Market Supervisory Authority have launched a joint investigation into the scandal to determine how much UBS is culpable.

UBS, for its part, is conducting its own internal investigation and claims that Adoboli was acting out of all of the bank’s policies.

European Banks Under Swiss Investigation

Rogue traders aren’t the only woes for UBS. European banks are under investigation for conspiring to manipulate interbank lending rates in Switzerland. But UBS is not alone in this legal turmoil. Other banks under investigation include Citigroup (NYSE:C), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), HSBC (NYSE:HBC), JPMorgan (NYSE:JPM), and RBS (NYSE:RBS).

Here’s how UBS shares are reacting to the news:

UBS AG (NYSE:UBS): UBS shares recently traded at $14.62, up $0.52, or 3.69%. They have traded in a 52-week range of $10.41 to $20.08. Volume today was 642,476 shares versus a 3-month average volume of 4,445,000 shares. The company’s trailing P/E is 9.35, while trailing earnings are $1.56 per share.

To contact the reporter on this story: Scott Gillette at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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