wealthwire.com / By Adam English / December 19th, 2012
Swiss bank UBS just accepted a $1.5 billion fine on Wednesday for its role in the London Inter-Bank Offered Rate scandal. About $260 million will go to the Financial Services Authority in the UK while $1.2 billion will go to the USA.
Now that the investigation is over, we’re finally getting a look at the evidence used in the investigation. The colluding trader and brokers are absurdly brazen, to say the least. Here are a couple examples:
On July 21, 2009, a broker advised a trader on how to mask manipulation by using a number of small changes than one dramatic change. He said:
“if you drop your 6M [6 month rate] dramatically on the 11th mate, it will look v[ery] fishy, especially if [Panel Bank 5] and [Panel Bank 2] go with you. I’d be v[ery] careful how you play it, there might be cause for a drop as you cross into a new month but a couple of weeks in might get people questioning you.”
The trader took the advice and stated, “don’t worry will stagger the drops …”
In July 2009, a trader made 39 requests to a broker for rigged rates. For example, in an electronic chat on July, 14 2009, the trader requested a “HIGH 6M SUPERMAN … BE A HERO TODAY.”