Swiss bank investigated over Libor 'manipulation'

UBS yesterday admitted that US and Japanese authorities are investigating whether it and other institutions improperly manipulated the daily rate at which banks lend to each other.

In its annual report, the Swiss banking giant said that authorities were looking into "improper attempts by UBS, either acting on its own or together with others, to manipulate the London inter-bank offered rate (Libor] at certain times".

It said the probe is focused on banks' submissions to the British Bankers' Association, which sets the rate that banks charge each other to lend unsecured funds.

UBS said it had received subpoenas from several bodies in the US, including the Securities and Exchange Commission, the Commodity Futures Trading Commission and the justice department. It had also received an order from the Japan Financial Supervisory Agency.

The bank stressed it is conducting an internal review and is cooperating with the probes.