Hong Kong is probing possible misconduct by UBS regarding the Chinese territory’s Interbank Offered Rate, as the global investigation into interbank lending rate manipulation expands.
The Hong Kong Monetary Authority on Thursday said it was investigating certain conduct by the Swiss bank after receiving information from overseas regulators. The central bank said it was assessing whether that conduct, “if substantiated”, had had any “material impact” on the setting of Hibor.
UBS on Wednesday agreed to pay $1.5bn to regulators to settle allegations that it had manipulated interbank lending rates. A US official said the alleged efforts were “epic in scale”. The penalty was the highest paid by a bank to US and UK regulators. Two former UBS traders face criminal charges in the worldwide Libor scandal.