UBS was sued for wrongful dismissal by two former traders in Singapore who claimed they were fired in a bid by the bank to cover up its role in allegedly manipulating key reference rates.
Bloomberg reports that Mukesh Kumar Chhaganlal, the bank’s former co-head of macro-trading for emerging markets in Asia, and Prashant Mirpuri, a former executive director, said in separate lawsuits filed at Singapore’s High Court that they were given no opportunity to defend themselves against the bank’s claims of gross misconduct on their part.
UBS, fined about $1.5bn in December by U.S., U.K. and Swiss regulators for trying to rig global interest rates, is being investigated by the Monetary Authority of Singapore and Hong Kong Monetary Authority. The Singapore central bank in September asked banks to expand their review of benchmark rates to include non-deliverable forwards.
The February 7th firings of the two traders were 'effected in order to cover up the defendant’s role in the growing scandal related to alleged fixing of rates of non-deliverable forwards', according to their lawsuits.
The Zurich-based bank today declined to comment on the Singapore lawsuits, saying in an e-mailed statement that reviews are ongoing and it is cooperating fully with the authorities. A non-deliverable forward is a derivative traders use to speculate on the movement of currencies that are subject to domestic foreign exchange restrictions.
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