The Straits Times
www.straitstimes.com
Published on Dec 20, 2012
 

UBS faces Hong Kong interest rate probe

 
 

HONG KONG (REUTERS) - Hong Kong's de facto central bank said it is investigating possible misconduct by UBS over its submission of interbank rates, raising the possibility that the bank could face another fine a day after it agreed to pay US$1.5 billion (S$1.8 billion) for its role in the Libor scandal.

The Hong Kong Monetary Authority (HKMA) said in a statement on Thursday that it had received information from overseas regulatory authorities about possible misconduct by UBS involving submissions for the Hong Kong Interbank Offered Rate (Hibor) and other reference rates in the region.

On Wednesday, the Swiss bank admitted to fraud and bribery in connection with efforts to rig Libor and other benchmark interest rates and agreed to pay $1.5 billion in fines to regulators in the United States, Britain and Switzerland.

While the bank will hope that settlement will draw a line under its role in Libor manipulation, it remains at risk of action from regulators elsewhere for possible rate rigging.