RBS, UBS Among The 20 Banks Censured By Singapore Regulator On Traders’ Bids To Manipulate Rates

Pointing The Finger

Singapore’s monetary authority censured banks for trying to rig benchmark interest rates and ordered them to set aside as much as $9.6bn at zero interest pending steps to improve internal controls.

Bloomberg reports ING Groep, Royal Bank of Scotland and UBS were among 20 banks at which 133 traders tried to manipulate the Singapore interbank offered rate, swap offered rates and currency benchmarks in the city-state, the Monetary Authority of Singapore said in a statement Friday.

The regulator said it will also make rigging key rates a criminal offense and bring supervision under its direct oversight.

Singapore, seeking to bolster its reputation as a major financial hub, is cracking down amid a widening global review of benchmarks. Bloomberg News reported this week traders manipulated key foreign-exchange rates in the $4.7 trillion-a-day currency market. Barclays, UBS and RBS have been fined $2.5bn over the past year for rigging Libor.

'It would be important for Singapore, in particular, to signal that business as usual isn’t going to be permitted', said Andrew Verstein, a lecturer at Yale Law School in New Haven. 'Singapore has a very strong reputation for being squeaky clean. It also has a reputation for being a very chummy place where everybody knows everybody'.

Hit the link below to access the complete Bloomberg article:

Singapore Censures 20 Banks on Traders’ Bids to Manipulate Rates

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