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http://uk.finance.yahoo.com/news/Le...XZWVrZW5kVGFrZW92ZXIEc2xrA3JlYWRtb3JlMTg3?x=0
Regulators in the UK, US and Japan will broaden their investigation into the banking sector following allegations UBS manipulated the Libor interbank lending rate.
Industry insiders say more than 15 banks have been contacted by regulators, with detailed investigations expected to begin into the ways leading financial institutions could have artificially fixed the leading benchmark for international borrowing.
On Tuesday, Swiss banking group UBS admitted it had "received subpoenas" from Wall Street regulator the Securities and Exchange Commission, the US Commodity Futures Trading Commission and the US Department of Justice in its annual report, published on Tuesday.
The allegations relate to London Interbank Offered Rate (Libor) submissions made by UBS to the British Bankers' Association (BBA), which sets the rate.
The bank added it has also received an order to provide information to Japan's Financial Supervisory Agency "concerning similar matters".
Senior banking sources told The Daily Telegraph several other major banks were likely to be drawn into the inquiry. One said: "If you ask whether the system is being manipulated you have to answer three things: do the banks have the means, motive and opportunity to do this? I would argue the answer to the first two is yes, which leaves you with opportunity and you have to make your own mind up about that."
Neither UBS nor the British Banking Association (BBA), which is responsible for setting the Libor rate, would comment any further on the story.
Other banks contacted by The Daily Telegraph refused to comment on whether they were under investigation. The only exception was West LB, the German Landesbank, which denied it was involved.
Regulators in the UK, US and Japan will broaden their investigation into the banking sector following allegations UBS manipulated the Libor interbank lending rate.
Industry insiders say more than 15 banks have been contacted by regulators, with detailed investigations expected to begin into the ways leading financial institutions could have artificially fixed the leading benchmark for international borrowing.
On Tuesday, Swiss banking group UBS admitted it had "received subpoenas" from Wall Street regulator the Securities and Exchange Commission, the US Commodity Futures Trading Commission and the US Department of Justice in its annual report, published on Tuesday.
The allegations relate to London Interbank Offered Rate (Libor) submissions made by UBS to the British Bankers' Association (BBA), which sets the rate.
The bank added it has also received an order to provide information to Japan's Financial Supervisory Agency "concerning similar matters".
Senior banking sources told The Daily Telegraph several other major banks were likely to be drawn into the inquiry. One said: "If you ask whether the system is being manipulated you have to answer three things: do the banks have the means, motive and opportunity to do this? I would argue the answer to the first two is yes, which leaves you with opportunity and you have to make your own mind up about that."
Neither UBS nor the British Banking Association (BBA), which is responsible for setting the Libor rate, would comment any further on the story.
Other banks contacted by The Daily Telegraph refused to comment on whether they were under investigation. The only exception was West LB, the German Landesbank, which denied it was involved.
