I have no idea if 7 years in prison and a ruined reputation is too harsh or too lenient. He was a bad boy and strict punishment is undoubtedly deserved. It’s true that if he went into a bank and stole $2.3 million, rather than lost $2.3bn in trading, he’d get a much stiffer sentence, and the trial revealed that he has a somewhat delusional view of events and what he was doing.
But the fact that UBS itself is facing huge fines (FT: http://www.ft.com/cms/s/0/066fa132-34b2-11e2-8986-00144feabdc0.html) suggests that its loss of control and push for higher risk-taking created an environment that led to the losses (see the Economist, http://www.economist.com/news/finance-and-economics/21567134-swiss-bank-also-has-much-learn-education-kweku-adoboli). That doesn’t excuse criminal activity, but if he had made the money back or was up, the fact is that it would be hushed up, and he’d get a $10million bonus/severance. The real question is, how often does that happen? (The answer, I’m afraid we all know, is 365 days per year.)