UBS, a Swiss banking giant has found itself under investigation from the US regulators after allegedly manipulating Libor.
Libor, the rate at which banks lend to each other, is set by the British Bankers Association, and the allegations refer to submission made to the association.
UBS announced that they were launching an internal review immediately.
“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 on Tuesday.
Libor is recognised around the world as the benchmark rate at which banks lend to other banks.
The British Bankers’ Association said, “We are committed to retaining the reputation and integrity of Libor,”
“We observe rigorous standards in our scrutiny and governance of the Libor mechanism, and work with the industry to ensure their continued full confidence in one of its most accurate and reliable benchmarks.”