SINGAPORE: Singapore yesterday censured 20 banks, including top global lenders, over attempts to manipulate local benchmark rates — part of a widening rate-rigging scandal being investigated by financial regulators worldwide.
The Monetary Authority of Singapore (MAS) said a yearlong review found that 20 banks — including Bank of America, JP Morgan Chase and Standard Chartered — had insufficient internal controls and risk management which allowed traders to attempt manipulation.
“MAS has censured these banks and directed them to adopt measures to address their deficiencies,” the city-state’s central bank said in a statement.
“The banks are required to report their progress to MAS on a quarterly basis and conduct independent reviews to ensure the robustness of their remedial measures.”
MAS, the city-state’s central bank, said 133 traders from these banks were found “to have engaged in several attempts to inappropriately influence the benchmarks”.
Three-quarters of these traders have resigned or been fired, while the rest face disciplinary actions including loss of bonuses and demotion.
The MAS crackdown is the latest in a global campaign by financial regulators to curb malpractices in the setting of benchmark rates, which has resulted in banks such as Royal Bank of Scotland, UBS and Barclays paying fines worth millions of dollars.
MAS ordered 19 of the banks to set aside deposits ranging from Sg$100m ($80m) to Sg$1.2bn for one year. ING Bank NV, UBS AG and the Royal Bank of Scotland had the highest deposit requirements due to the “severity of attempts” by their traders to influence the rates. AFP
