Mortgage News
Leading banks drawn into Libor fixing inquiry
Regulators in the UK, USA and Japan are investigating Libor fixing in the banking sector involving more than 15 firms, according to insiders.
It follows allegations that UBS manipulated the Libor interbank lending rate.
Industry insiders said detailed investigations are expected to begin into the ways leading financial institutions could have artificially fixed the leading benchmark for international borrowing, the Telegraph reports.
On Tuesday, UBS admitted in its annual report that it had “received subpoenas” from Wall Street regulator the Securities and Exchange Commission, the US Commodity Futures Trading Commission and the US Department of Justice.
The allegations relate to Libor submissions made by UBS to the British Bankers’ Association (BBA), which is responsible for setting the rate.
The bank added that it has also received an order to provide information to Japan’s Financial Supervisory Agency “concerning similar matters”.
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Neither UBS nor the British Banking Association (BBA) would comment any further on the story.