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Two U.S. funds sue dozens of banks for Singapore rate rigging

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Staff writer | Monday July 4, 2016 2:38AM ET
Banks
Finance   Conspiring to rig derivative prices

Two U.S.-based investment funds have filed a lawsuit in New York against dozens of banks accusing them of conspiring to rig derivative prices incorporating Singapore interest rate benchmarks, a court filing showed.


The suit was filed by Greenwich, Connecticut-based FrontPoint Asian Event Driven Fund and New York-based Sonterra Capital Master Fund and traces back to the 2013 scandal in Singapore when the central bank found more than 100 traders in the city-state tried to rig key borrowing and currency rates.

Among the banks being sued are Citigroup, Bank of America, JPMorgan Chase,, RBS, UBS, ING, BNP Paribas, Oversea Chinese Banking Corporation, Barclays, Credit Agricole, Credit Suisse, Standard Chartered, DBS, Mitsubishi Ufj), HSBC, Macquarie and Commerzbank.

In 2013, Singapore's central bank censured a record 20 banks, saying 133 traders had tried to manipulate the rates, including the benchmark bank-to-bank SIBOR rate, the Swap Offered Rate and derivatives. (reut.rs/299cRc4)

It did not fine the banks involved, but instead directed 19 of them to set aside additional reserves for a year and to adopt measures to address deficiencies.

The Monetary Authority of Singapore has since returned all of the around $9 billion it took from the banks as penalties, saying they have taken steps to prevent a recurrence of attempts to rig rates.

 

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