The United States regulators are investigating Swiss banking giant UBS for allegedly manipulating the London Interbank Offer Rate or LIBOR – the rate at which banks lend each other for terms up to one year.
In an announcement made yesterday, UBS said it has received subpoenas from the US Department of Justice (DoJ), the Securities and Exchanges Council (SEC) and Commodity Futures Trading Commission.
The subpoenas relate to the submissions the bank made to the British Bankers Association (BBA), the body that sets the LIBOR rates.
UBS said it is conducting an internal inquiry into the alleged irregularities.
“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”, it said on Tuesday.
LIBOR is a global benchmark rate for lending and borrowing by banks in the interbank money market.
“We are committed to retaining the reputation and integrity of Libor”, said the BBA in a statement.
“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”, the BBA statement added.