Nation & World News

Hong Kong Says UBS Tried To Rig Interbank Lending Rate

By Scott Neuman on March 14th, 2014

UBS, which was fined $1.5 billion in 2012 for what regulators said was “routine and widespread” rigging of the London interbank offered rate, or Libor, has been censured for trying to do the same thing with Hong Kong’s benchmark rate between 2006 and 2009.

The Hong Kong Monetary Authority, the Chinese territory’s de facto central bank, says as part of a lengthy investigation, it “found 100 chat messages in which UBS traders made requests to make submissions at a certain level. However, it added that the requests had had no impact on the setting of rates,” The Financial Times reports.

The newspaper says:

“Hong Kong launched an investigation into potential rigging of Hibor in 2013 at the height of the scandal over banks’ manipulation of the London interbank and other global rates, which govern the returns of more than $350tn of fixed income and derivative products.

“The Hong Kong Monetary Authority said it had examined more than 31m messages from nine banks involved in the fixing of Hibor between 2005 and 2012.”

” ‘The HKMA found evidence of misconduct in the submission of Hibor rates by only one bank, and no evidence of collusion between these banks to rig the Hibor fixing,’ it said.”

UBS, which has not been a part of the Hibor fixing panel since 2010, said in a statement that it was “pleased that the investigation of the HKMA returned the same results as our own internal investigation — no collusion among banks and no noticeable impact on the fixing of Hibor.”

As we reported in December 2012, UBS was fined $1.5 billion for manipulating the London rate. That was the same month HKMA launched its investigation into efforts to do the same with the Hibor. There have also been crackdowns by banks in Japan and Singapore.

Bloomberg says HKMA has asked UBS to:

“[To] prepare a plan to address the ‘control and governance weaknesses’ within six months and to submit a report from an external auditor on the effectiveness of the plan.”

Copyright 2014 NPR. To see more, visit http://www.npr.org/.

This entry was posted in News from NPR. Bookmark the permalink.

Comments are closed.

 

More Stories in News from NPR

A photo apparently showing a Ferguson police officer wearing an "I am Darren Wilson" bracelet.

Ferguson Police Will Be Banned From Wearing ‘I Am Darren Wilson’ Bracelets

In a letter, the Justice Department said the accessory was “exacerbating an already tense atmosphere.” After a talk with the department, the police chief said he would institute a new policy.


Bill Gross

The ‘Bond King’ Leaves His $2 Trillion Kingdom

Bill Gross built Pacific Investment Management Co., or PIMCO, into a $2 trillion powerhouse. But this week, he abruptly left, roiling the bond-investing world.


Thailand's Prime Minister Gen. Prayuth Chan-ocha, center, at the government house in Bangkok earlier this month. Prayuth, who seized power in May, has threatened to personally take over the writing of soap operas on Thai television.

Thai Leader Threatens New Takeover: The TV Soaps

Prime Minister Gen. Prayuth Chan-ocha says he’s ordered a complete rewrite of Thailand’s daily fare of infidelity and violence, and if it’s not done right, he’s threatened to do the job himself.


A Parrot Bebop drone flies during a demonstration in May in San Francisco.

Lights, Camera, Drones: Hollywood’s Lens Gets A Little Larger

The FAA is granting six movie and TV production companies permission to use drones for filming. The move could pave the way for the unmanned aircraft systems to be used in other commercial ventures.


A screen shot provided by FlightAware shows airline traffic at 10:20 a.m. EDT Friday over the United States. A fire at a Chicago-area air traffic control facility has grounded hundreds of flights.

Fire Grounds Hundreds Of Flights At Chicago Airports

The fire in the basement of the Chicago Air Route Traffic Control Center in Aurora, Ill., caused numerous flight cancellations at O’Hare and Midway.


Thank you for your support

WUFT depends on the support of our community — people like you — to help us continue to provide quality programming to North Central Florida.
Become a Sustainer
I want to support FM 89.1/NPR
I want to support Florida's 5/PBS
Donate a Vehicle
Day Sponsorship Payments
Underwriting Payments