UBS bosses should have known about Libor, FSA

Speaking to MPs on the Parliamentary Commission on Banking Standards today (10 January), Tracey McDermott, head of enforcement for the FSA, said senior management should have been aware of investigations.

Her claims came after former UBS staff, Marcel Rohner, group chief executive between 2007 and 2009, and Jerker Johansson, head of the investment bank between 2008 and 2009, claimed they had only learned about Libor fixing allegations from press reports.

Ms McDermott said: “It would not surprise me that we had not spoken to them. I am slightly surprised that they would not have been aware an investigation was happening.”

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She said there was no evidence that these people were responsible for the manipulation.

Former FSA chief executive Sir Hector Sants also expressed surprise that they would not have known about the investigations.

The FSA fined UBS £160m for Libor manipulation in December 2012. The final notice showed that UBS’s legal and compliance department commenced reviews of its Libor processes and procedures in 2008 and 2009 amid press speculation about wider industry manipulation of rates.

A spokesman for the FSA said: “In 2008 and 2009 we were asking for Libor-related data.”