Swiss bank UBS said it had received subpoenas from US and Japanese regulators regarding whether it made "improper attempts" to manipulate LIBOR rates, the benchmark price for interbank borrowing costs. "UBS understands that the investigations focus on whether there were improper attempts by UBS, either acting on its own or together with others, to manipulate LIBOR rates at certain times," the bank said in its annual report on Tuesday.
The Financial Times in its Wednesday edition said regulators, including Britain's Financial Services Authority, are probing all 16 banks that help the British Bankers' Association (BBA) set LIBOR rates. In particular, they are investigating how LIBOR was set for US dollars during 2006-2008, just before and after the financial crisis, the newspaper said, citing sources familiar with the probes.
UBS said it had received subpoenas from the US SEC, Commodity Futures Trading Commission and Department of Justice regarding its submissions to the BBA. It has also been ordered to provide information to the Japan Financial Supervisory Agency concerning similar matters. UBS said it was conducting an internal review and is cooperating with the investigations. It declined to provide any further details. The SEC declined to comment.