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US: Two investment funds sue dozens of banks for Singapore rate-rigging

 |  July 5, 2016

Two US-based investment funds have filed a lawsuit in New York against dozens of banks accusing them of conspiring to rig derivative prices incorporating Singapore interest rate benchmarks, a court filing showed.

The suit was filed by Greenwich, Connecticut-based FrontPoint Asian Event Driven Fund and New York-based Sonterra Capital Master Fund and traces back to the 2013 scandal in Singapore when the central bank found more than 100 traders in the city-state tried to rig key borrowing and currency rates.

Among the banks being sued are Citigroup, Bank of America, JPMorgan Chase,, RBS, UBS , ING, BNP Paribas, Oversea Chinese Banking Corporation, Barclays, Credit Agricole, Credit Suisse, Standard Chartered , DBS, Mitsubishi Ufj, HSBC, Macquarie and Commerzbank.

A Citigroup spokesman said “it is without merit and we will defend ourselves vigorously.” Credit Suisse declined to comment. The other banks did not immediately respond to requests for comment outside business hours.

In 2013, Singapore’s central bank censured a record 20 banks, saying 133 traders had tried to manipulate the rates, including the benchmark bank-to-bank SIBOR rate, the Swap Offered Rate and derivatives.

It did not fine the banks involved, but instead directed 19 of them to set aside additional reserves for a year and to adopt measures to address deficiencies.

Full Content: Reuters

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