Global: UBS embroiled in even more rate-rigging allegations

Swiss lender UBS is accused of participating in yet another rate manipulation scheme as the Hong Kong Monetary Authority said it has found evidence of UBS traders making 100 attempts to manipulate the Hibor rate.

Hibor, or the Hong Kong Interbank Offered Rate, establishes the rate for inter-bank loans. Reports say Hong Kong authorities found chat messages from UBS between 2006 and 2009 that showed traders making “change requests…with a view to rigging the Hibor fixing.” The HKMA said it did not find evidence of collusion between UBS and other banks.

The financial authority called UBS’s failure to report the conduct “unacceptable.”

While the regulator is considering whether to sanction the bank, reports say UBS released a statement and said the lender 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 from any conduct occurring during the period in question.”

Authorities throughout the globe have issued record-breaking fines as scandals break regarding banks’ manipulation of the LIBOR and Euribor benchmark lending rate; investigations are currently ongoing regarding allegations of manipulation of the foreign exchange benchmark.

Full Content: BBC

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