In February, U.S. Attorney Preet Bharara charged Kareem Serageldin, a former global head of the Swiss bank's collateralized debt obligation business, with masterminding a scheme to mismark positions in asset-backed securities, helping Mr. Serageldin and his traders meet targets linked to annual bonuses.

Mr. Sergaldin expressed surprise at the time of the indictment, noting through a lawyer that he'd been cooperating with the law. Nonetheless, prosecutors requested his presence in New York, threatening extradition if he refused. That now seems likely, according to The Journal:

Mr. Serageldin, a dual U.S.-U.K. citizen, is expected to appear in court in the U.K. on Thursday and the U.S. will likely to seek his return to the U.S. to face charges of criminal conspiracy, filing false books and records, and wire fraud. Sean Casey, a lawyer for Mr. Serageldin, declined comment Wednesday.

This news after former UBS executive and Belgian citizen Peter Ghavami was arrested at Kennedy Airport in 2010 on charges he helped rig bids on municipals bonds—and after Dealbook cited Mr. Ghavami's case to warn Libor manipulators in the employ of foreign banks to consider keeping out of the country—leaves us to wonder: Is there no place safe?

First, Nasdaq offered a $40 million compensation pool, with a healthy chunk to paid in credits on future trades.A month later, Nasdaq sweetened the pool to $62 million, with all claims to be paid in cash.

Not good enough for UBS, which said it would “take appropriate legal action against Nasdaq to address its gross mishandling of the offering and its substantial failures to perform its duties,” i.e. the Swiss bank would sue the exchange over every penny of the $356 million it said it lost on the IPO. Not good enough for Citigroup either: "hundreds of millions of dollars of losses suffered by market participants in connection with the Facebook IPO resulted from a series of a series of hasty, self-interested and high-risk business decisions by Nasdaq," it said in a letter of its own.

And so it seemed reasonable to wonder whether Nasdaq would improve its compensation scheme yet again. Not this time, according to Reuters:

Nasdaq OMX Group Inc stood by its proposed $62 million plan to compensate firms affected by the fallout from Facebook's botched initial public offering, taking aim at UBS AG, Citigroup Inc and other parties that derided the payback plan. In a letter to the U.S. Securities and Exchange Commission dated September 17, Nasdaq said the proposed compensation pool "goes well beyond what is required under current Nasdaq rules." 

Goldman Sachs' Chief Financial Officer David Viniar will retire at the end of January, the firm said in a press release yesterday. His replacement, Harvey M. Schwartz, will have big shoes to fill. Mr. Viniar “set the gold standard for CFOs across the industry,” analyst Meredith Whitney said in a note, according to Bloomberg. A graduate of Rutgers University and Columbia Business School, Mr. Schwartz joined Goldman through commodities trading unit J. Aron, the same business in which Goldman CEO Lloyd Blankfein and COO Gary Cohn started in the firm.

Lawyers for the bankruptcy estate of Lehman Brothers sued JPMorgan over $2.6 billion in derivatives claims.

Renee Haugerud, the founder of hedge fund Galtere, describes herself as “a tire kicker, not a screen watcher,” in an interview with Bloomberg Markets magazine. Mr. Haugerud renewed her faith in a recent bet on corn futures after noting the dry soil and shorter -than-usual corn stalks at her firm's Minnesota test farm.

Depositors pulled about $425 billion euros from banks in Portugal, Ireland, Greece and Spain in the 12 months ended July 31. Deposit flight is creating a two-tiered banking system that undermines European efforts to save the region's monetary union, according to Bloomberg.

Distressed debt investors such Paul Singer's Elliott Management are running out of fresh carcasses from which to pick their profits, according to The New York Post.

Short-seller Jim Chanos sees no shortage of overvalued stocks, according to Bloomberg.

A Muslim hacker group may have been responsible for a slowdown on the Bank of America website.

UBS plans to cut 80 to 90 jobs in its European investment banking operation by the end of the year, according to Bloomberg.

Bloomberg lays it out the gory details:

Adoboli’s personal bank accounts were mostly overdrawn and he had borrowed money from various short-term lenders, [prosecutor Esther Schutzer-Weissmann] said. At UBS, his pay rose from 40,500 pounds ($65,900) in 2005 to 360,000 pounds in 2010, including bonus, another prosecutor said at the opening day of his trial last week. ... By October 2010, Adoboli’s monthly salary payments into his primary checking account were 6,179.69 pounds. Turnover on the account in the 12 months leading up to September last year was 233,000 pounds. On the day he was arrested on Sept. 15 last year, the account was overdrawn by 3,594.70 pounds, according to the agreed facts. He had borrowed from at least eight short-term lenders.

Meanwhile, Mr. Kweku was creating fake accounts to shade his unauthorized bets from superiors at the bank, and while the trades would eventually show profit, they turned violently against him at the onset of the European sovereign debt crisis. By the time he owned up to his $2.3 billion trading loss, prosecutors said, Mr. Adoboli had overdrawn three of his four bank accounts, and had less than 4 pounds in the last.

Credit: News12

The victims of a May home invasion in Westchester County were a former UBS co-head of U.S. mergers and acquisitions and his wife, according to press accounts.

Last Thursday, the Department of Justice announced charges against a Bartek Zajkowski, a Polish national the government accused of accosting two victims during a home invasion in Bedford Hills. According to a criminal complaint, Mr. Zajkowski encountered his male victim outside the house, binding the man with duct tape and plastic ties before seeking valuables inside; there, he encountered the first victim's wife, who he shot in the stomach with a BB gun.

While the Justice Department didn't identify the couple, Bedford police told Newsday that the victims were Leonardo "Lee" LeBrun and his wife Lara; LoHud.com identified Mr. LeBrun as a former  co-head of M&A for UBS Americas. Mr. LeBrun retired from the Swiss bank in May 2011 at the age of 44 to spend more time with his family.

The incident would become more bizarre and more terrifying.

Ms. LeBrun managed to trigger an alarm, and Mr. Zajkowski fled without any booty save for Mr. LeBrun's wallet, the government says. Two days later, a barn on the LeBrun's property was burned to the ground, and within a week of the home invasion, the couple received the first of two threatening letters, in which Mr. Zajkowski allegedly threatened the couple's children. From Newsday:

"I know where you live, what you do, how you and entire family of yours looks like, everything I need to know," it read. "... If you want your KIDS to be SAFE, YOU will pay one million $ for each one, 3 kids = 3 million $. It can be 3 payments of 1 million each on the account you receive. Faster you pay all of it, faster I will be gone."

And:

"Your wife mess with me," the letter stated. "She should let me do my thing. For that she can consider her horses very lucky that they didn't fry in that barn. Imagine running horses on fire."

The LeBruns didn't pay the ransom, and the threats weren't acted upon. Mr.  Zajkowski was arrested in connection to a 2011 robbery in Connecticut and linked to the Bedford Hills Home invasion; he was charged with one count of attempted robbery, one count of attempted extortion and one count of mailing threatening communications, each of which carries a maximum charge of 20 years in prison.

To put the huge trading loss of $2.3 billion in some sort of perspective, this sum of money would be enough to pay a year's salary for nearly 70,000 new nurses or two Wembleys or perhaps even six new hospitals.

I have now left the office for the sake of discretion. I will need to come back in to discuss the positions and explain face to face, but for reasons that are obvious, I did not think it wise to stay on the desk this afternoon. ...

I take responsibility for my actions and the shit storm that will now ensue. I am deeply sorry to have left this mess for everyone and to have put my bank and my colleagues at risk.

Thanks, Kweku

Bradley Birkenfeld, the former UBS banker who provided the Internal Revenue Service with evidence that the Swiss bank was helping U.S. citizens evade taxes, will receive $104 million in a whistleblower award. Mr. Birkenfeld, who said he once concealed diamonds in a toothpaste tube on behalf of a client, was released from prison on Aug. 1 after serving part of a 40-month sentence after confessing that he had forgotten to blow the whistle on himself.

Deutsche Bank is lagging behind its European peers when it comes to meeting new regulatory capital requirements, according to Bloomberg. The bank may cut jobs and reduce pay ratios under a restructuring plan announced this week.

A German court paved the way for the European Central Bank to begin a new program to buy sovereign debt, dismissing a lawsuit that sought to delay the plan.

Two-thirds of economists polled by Bloomberg think that the Federal Reserve will announce a new round of bond purchases tomorrow.

More details in the plea agreement signed by Peregrine Financial Group founder Russell Wasendorf Sr., who faces up to 50 years in prison under a deal with prosecutors.

Zuck spoke; Facebook shares rose.

Plaintiffs say that private equity firms including KKR, Silver Lake Partners and Bain Capital colluded to tamp down prices on buyout deals, according to a complaint filed in Massachusetts Federal District Court. The New York Times went to court to get the documents, which Bain lawyers worried would get washed into the election news cycle.

No one in France believes Bernard Arnault, the Louis Vuitton chief and the country's richest man, when he says he'll keep paying taxes in France once he's received Belgian nationality, according to The Financial Times. French president François Hollande has promised to tax income above 1 million euros at 75 percent.

Mutual funds run by Morgan Stanley are showing hefty stakes in Facebook, The Wall Street Journal reports, and while many of those shares were acquired pre-IPO, allowing the funds to show paper gains despite Facebook's fallen stock price, investors in the funds are at risk of further Facebook losses.

HSBC is talking settlement with U.S. regulators over charges the bank violated sanctions against Iran and Sudan among other nations. The bank set aside $700 million for the matter in July.

Bank of America's four new directors are typical bank-director types, Bloomberg reports, perhaps indicating that BofA thinks it's on the right path, definitely indicating that the train has left the station on our dream of shaking up the North Carolina-based bank from inside the boardroom.

Citigroup's private banking unit withdrew $410 million from John Paulson managed hedge funds, a lot of money, no doubt, but as sharper wits than ours have pointed out, so long as Mr. Paulson himself doesn't send a redemption letter to a certain hedge fund located at 1251 Avenue of the Americas, Paulson & Co. should be okay.

SEC Chairman Mary L. Schapiro through down her arms in the effort to rein in systemic risk posed by money-market funds. The Times says the Treasury might take up more powerful weapons.

The case of Vietnamese banker Ly Xuan Hai shows once again that it's safer to be a crooked banker in the west than the east.

A top German politician said that the Greek bailout plan can't be renegotiated. Though history tells us there can't be a renegotiation until in fact there is. Elsewhere, is Finland the forgotten frontier in a potential eurozone breakup?

Standard Chartered’s lawyers believe there's a case to sue DFS over reputational damage, reports The Financial Times.

Add Bank of England governor Mervyn King to the list of Brits tweaked by DFS chief Ben Lawsky's decision to file an order against Standard Chartered without coordinating with other U.S. authorities. King asked regulators to "refrain from making too many public statements until the investigation is completed," at his quarterly news conference.

Knight Capital says malfunctioning trading software cost the firm $270 million after taxes, compared with Knight's previously reported pretax loss of $440.

Knight might have accepted a $500 bailout from Citadel if not for mistrust between the two market-making wholesalers and their respective CEOs.

U.S. prosecutors agreed to a leniency deal for junior UBS employees said to be involved in the Swiss bank's efforts to manipulate interbank lending rates, according to The Wall Street Journal.

Morgan Stanley is seeking to replace some highly-paid bond traders with computers and technicians, The Journal reports.

Goldman Sachs cut its exposure to Italian sovereign debt by 92 percent in the second quarter, according to Bloomberg.

Shockingly, Mariano Rajoy’s efforts to implement austerity measures in Spain have not done wonders for the prime minister's popularity.

In 2008, Goldman Sachs employees contributed $6.1 million to political campaigns, 75 percent of which went to Democrats. This year, Goldman employees have donated $4.9 million, 70 percent of which found its way to Republican coffers.

Banks are taking advantage of low interest rates to stretch profit margins on mortgages, says The New York Times.

The initial public offering for British soccer club Manchester United is oversubscribed, sources tell Reuters. One investor asks: why is the club going public in the U.S., where investors don't know anything about the soccer business?

Buyout specialist Al Tapper spent $200,000 to produce a musical about baseball for which he wrote music and lyrics. The Washington Post called the show "syrupy"; Mr. Tapper said that the show has since undergone extensive rewrites.

Day-trading settlement: The Financial Industry Regulatory Authority is expected to enter a settlement today with Swift Trade founder Peter Beck, and The Wall Street Journal as a long and excellent piece on the Hungarian-born entrepreneur's global operations. Mr. Beck founded Swift in 1998 after reading about internet trading on an airplane; By 2008, the network employed about 4,000 traders in places like Romania, China and Nicaragua, where the firm could hire on the cheap. Swift also took an aggressive stance towards the law, failing to create a supervisory structure, creating an atmosphere in which traders reportedly manipulated prices.

Post-whale world: The type of hedge fund that profited on JPMorgan's $5.8 billion trading loss in credit derivatives are looking attractive, Reuters reports, as investors seek less volatile investments. The obvious question (which probably has an obvious answer) is whether the credit funds are more stable, or just found themselves in the right place to take advantage of the trader known as the London Whale.

Whither Europe: Deutsche Bank blamed a 46 percent drop in a second-quarter earnings on the European debt crisis. BBVA said net income fell 58 percent, as Spain's real estate crisis weighed on earnings. Things may be getting worse: the bank will set aside more than 3 billion euros against souring real estate loans in the second half of the year, after provisioning 1.43 billion euros in the first six months. Greece is running out of cash to pay everyday expenses such as police department salaries and pension disbursements. Unemployment in the eurozone rose to 11.2 percent.

Tale of the tiger (cub): As a student at the University of Virginia, John Gerson talked his way into an internship at Julian Robertson's Tiger Management. Then joined John A. Griffin when the former Tiger deputy founded Blue Ridge Capital. Now Mr. Gerson, 37, has raised $1.2 billion to found a fund of his own, Falcon Edge Capital.

Fall guy? As Royal Bank of Scotland negotiates a Libor settlement with authorities investigating the bid-rigging matter, CEO Stephen Hester may be forced to leave his job ahead of plans.

Taking medicine: Nomura Holdings, Japan's biggest brokerage, faces unspecified penalties after regulators recommended that the firm be disciplined after employees participated in insider trading schemes by leaking information about public offerings.

Soccer riches: Manchester United set a range of $16 to $20 a share in updated documents describing its initial public offering; at a midpoint of $18 a share, the offering would value the British soccer club at $2.95 billion.

Market crash: The bottom is falling out of the market for used private jets, according to The New York Post, hitting the one percent in their wallets.

Kohlberg director out: Christopher Lacovara, one of two managing directors at Kohlberg & Co., the private equity firm founded by Jerome Kohlberg, has left the firm to pursue other opportunities. Kohlberg & Co. was founded by Jerome Kohlberg, who also co-founded buyout giant KKR.