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

NATO Secretary General Anders Fogh Rasmussen on Monday.

NATO To Create New ‘Spearhead’ Force For Eastern Europe

NATO leaders are expected this week to set up a rapid-response force to defend against potential Russian aggression.


Kenneth Bae, an American tour guide and missionary serving a 15-year sentence in North Korea, speaks to The Associated Press on Monday. Bae and two other detained Americans urged the U.S. to send a high-level emissary to secure their release.

3 Americans Detained In North Korea Urge U.S. To Secure Their Release

The State Department said the men should be released out of humanitarian concern and asked that Kenneth Bae, who has been held for two years, be granted amnesty.


The Flight Of The Passenger Pigeon, Now 100 Years Extinct

Passenger pigeons were once the world’s most abundant bird, but they were also the cheapest protein available. The last passenger pigeon, Martha, died exactly a century ago at the Cincinnati Zoo.


British Prime Minister David Cameron told the House of Commons on Monday that he wants to give police the power to seize the passports of Islamist fighters bound for Iraq and Syria.

U.K. Seeks To Expand Terrorism Laws To Target British Fighters

Prime Minister David Cameron wants to give police the power to seize passports of Islamist fighters bound for Iraq and Syria. On Friday, Britain raised its threat level to “severe” from “substantial.”


The first edition of Charlie and the Chocolate Factory and the original hero Golden Egg from the film Willy Wonka and the Chocolate Factory on display at Profiles In History in Calabasas, northwest of downtown Los Angeles, on July 19, 2012.

For Anniversary, A New Chapter Of ‘Charlie And The Chocolate Factory’

The chapter describes the Vanilla Fudge Room, an extra room in the chocolate factory. In it, Charlie Bucket goes to the factory with his mother – not his grandfather. The book turns 50 this month.


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