Thursday, 20 December 2012 11:02
Commission requests evidence on UBS Libor scandal
Andrew Tyrie MP, chairman of the Parliamentary Commission on Banking, has requested to hear evidence on the UBS Libor scandal.
Mr Tyrie, who is also chairman of the Treasury Select Committee, described UBS' actions as "appalling".
He said: "It looks even more appalling than Barclays. This is the manipulation of one of the world's most important benchmarks over many years for profit, with extensive collusion, corruption and much else besides.
"It's not just the culture and standards in the banking industry that have slipped badly. It appears to be a manifest failure of regulation. We will look at both."
UBS was fined £940m by regulators in England, America and Switzerland yesterday for manipulation of the London Interbank Offered Rate rating system, including £160m by the Financial Services Authority.
Problems included UBS manipulating submissions to benchmark rates, colluding with employees at other banks to influence benchmark rates and giving inappropriate directions to UBS rate submitters that were motivated by a desire to avoid negative press coverage.
The FSA described the misconduct as "extensive and widespread" and said at least 2,000 inappropriate submissions were made and at least 45 individuals were involved or aware of the misconduct.
The commission previously conducted a detailed inquiry into Barclays manipulation of the Libor this summer and published a report of its findings in August.
The commission will hear evidence in the New Year.
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.