Friday, June 14, 2013
Singapore Censures 20 Banks for Bids to Rig Benchmark Rates
Singapore Censures 20 Banks for Bids to Rig Benchmark Rates
By Andrea Tan & Sanat Vallikappen - Jun 14, 2013 7:41 PM GMT+0800
Singapore’s monetary authority censured banks for trying to rig benchmark interest rates and ordered them to set aside as much as S$12 billion ($9.6 billion) at zero interest pending steps to improve internal controls.
ING Groep NV (INGA), Royal Bank of Scotland Group Plc (RBS) and UBS AG (UBSN) were among 20 banks at which 133 traders tried to manipulate the Singapore interbank offered rate, swap offered rates and currency benchmarks in the city-state, the Monetary Authority of Singapore said in a statement today. The regulator said it will also make rigging key rates a criminal offense and bring supervision under its direct oversight.
Enlarge image Singapore Censures 20 Banks for Attempts to Rig Benchmark Rates
ING Groep NV, Royal Bank of Scotland Group Plc and UBS AG were among 20 banks at which 133 traders tried to manipulate the Singapore interbank offered rate, swap offered rates and currency benchmarks in the city-state, the Monetary Authority of Singapore said in a statement. Photographer: Munshi Ahmed/Bloomberg
The crackdown in Singapore comes amid a widening global review of benchmark rates following revelations this week of potential manipulation in the $4.7 trillion-a-day currency market. Barclays Plc, UBS and RBS have paid $2.5 billion over the past year to settle claims with U.S. and U.K financial regulators on rigging Libor.
“Regulators around the world are taking this opportunity to identify where they may be weaknesses in mechanisms banks have in place,” David Marshall, a Singapore-based analyst at CreditSights Inc., said by telephone today. “They’ve been keen to put in place a clearer and stricter regulatory environment in which to operate.”
Disciplinary Action
Nineteen firms were asked to post reserves ranging from S$100 million to S$1.2 billion -- depending on the severity of the attempts by their traders to manipulate rates -- for a year and will earn zero interest on that money, MAS said. Commerzbank AG was exempted from setting aside any money.
The banks have taken disciplinary action against the 133 traders found to have tried to rig the rates, with about three-quarters of them having resigned or been asked to leave their firms, MAS said. The traders who are still employed will be subject to disciplinary action, the regulator said.
“While there was no conclusive finding the SIBOR, SOR and FX benchmarks were successfully manipulated, the traders’ conduct reflected a lack of professional ethics,” according to the statement from the central bank.
Sibor, used to price debt ranging from commercial term-loans to homeowners’ mortgages, is calculated daily on behalf of the Association of Banks in Singapore. For the local currency rate, a poll is conducted of the 11 contributing banks to ask how much it would cost to borrow Singapore dollars from each other for different periods from one month to 12 months. Some of the highest and lowest quotes are excluded, and the remaining are averaged and published at 11:30 a.m. in Singapore.
Banks Involved
ING “fully cooperated” with the review in Singapore and has taken disciplinary actions against the “small number of individuals involved,” the Amsterdam-based bank said in an e-mailed statement today. The firm will also take steps to improve procedures for submitting rates, monitor the processes and train staff, it said.
Bank of America Corp. (BAC), BNP Paribas SA, Oversea-Chinese Banking Corp., Barclays, Credit Agricole, Credit Suisse AG, DBS Group Holdings Ltd., Deutsche Bank AG, Standard Chartered Plc, United Overseas Bank Ltd. (UOB), Australia & New Zealand Banking Group Ltd. (ANZ), Citigroup Inc., JPMorgan Chase & Co., Macquarie Group Ltd., HSBC Holdings Plc and Mitsubishi UFJ Financial Group Inc.’s Bank of Tokyo-Mitsubishi UFJ unit were among the banks named by MAS in the statement today.
“The punishment meted out will provide a clear signal that manipulation and other forms of financial shenanigans, riggings and violations of the law will not be tolerated in a well-respected global financial center,” Joseph Cherian, director of the Centre of Asset Management Research & Investments at the National University of Singapore’s Business School, said by telephone today.
To contact the reporters on this story: Andrea Tan in Singapore at atan17@bloomberg.net; Sanat Vallikappen in Singapore at vallikappen@bloomberg.net
To contact the editors responsible for this story: Douglas Wong at dwong19@bloomberg.net; Chitra Somayaji at csomayaji@bloomberg.net
- wong chee tat :)
By Andrea Tan & Sanat Vallikappen - Jun 14, 2013 7:41 PM GMT+0800
Singapore’s monetary authority censured banks for trying to rig benchmark interest rates and ordered them to set aside as much as S$12 billion ($9.6 billion) at zero interest pending steps to improve internal controls.
ING Groep NV (INGA), Royal Bank of Scotland Group Plc (RBS) and UBS AG (UBSN) were among 20 banks at which 133 traders tried to manipulate the Singapore interbank offered rate, swap offered rates and currency benchmarks in the city-state, the Monetary Authority of Singapore said in a statement today. The regulator said it will also make rigging key rates a criminal offense and bring supervision under its direct oversight.
Enlarge image Singapore Censures 20 Banks for Attempts to Rig Benchmark Rates
ING Groep NV, Royal Bank of Scotland Group Plc and UBS AG were among 20 banks at which 133 traders tried to manipulate the Singapore interbank offered rate, swap offered rates and currency benchmarks in the city-state, the Monetary Authority of Singapore said in a statement. Photographer: Munshi Ahmed/Bloomberg
The crackdown in Singapore comes amid a widening global review of benchmark rates following revelations this week of potential manipulation in the $4.7 trillion-a-day currency market. Barclays Plc, UBS and RBS have paid $2.5 billion over the past year to settle claims with U.S. and U.K financial regulators on rigging Libor.
“Regulators around the world are taking this opportunity to identify where they may be weaknesses in mechanisms banks have in place,” David Marshall, a Singapore-based analyst at CreditSights Inc., said by telephone today. “They’ve been keen to put in place a clearer and stricter regulatory environment in which to operate.”
Disciplinary Action
Nineteen firms were asked to post reserves ranging from S$100 million to S$1.2 billion -- depending on the severity of the attempts by their traders to manipulate rates -- for a year and will earn zero interest on that money, MAS said. Commerzbank AG was exempted from setting aside any money.
The banks have taken disciplinary action against the 133 traders found to have tried to rig the rates, with about three-quarters of them having resigned or been asked to leave their firms, MAS said. The traders who are still employed will be subject to disciplinary action, the regulator said.
“While there was no conclusive finding the SIBOR, SOR and FX benchmarks were successfully manipulated, the traders’ conduct reflected a lack of professional ethics,” according to the statement from the central bank.
Sibor, used to price debt ranging from commercial term-loans to homeowners’ mortgages, is calculated daily on behalf of the Association of Banks in Singapore. For the local currency rate, a poll is conducted of the 11 contributing banks to ask how much it would cost to borrow Singapore dollars from each other for different periods from one month to 12 months. Some of the highest and lowest quotes are excluded, and the remaining are averaged and published at 11:30 a.m. in Singapore.
Banks Involved
ING “fully cooperated” with the review in Singapore and has taken disciplinary actions against the “small number of individuals involved,” the Amsterdam-based bank said in an e-mailed statement today. The firm will also take steps to improve procedures for submitting rates, monitor the processes and train staff, it said.
Bank of America Corp. (BAC), BNP Paribas SA, Oversea-Chinese Banking Corp., Barclays, Credit Agricole, Credit Suisse AG, DBS Group Holdings Ltd., Deutsche Bank AG, Standard Chartered Plc, United Overseas Bank Ltd. (UOB), Australia & New Zealand Banking Group Ltd. (ANZ), Citigroup Inc., JPMorgan Chase & Co., Macquarie Group Ltd., HSBC Holdings Plc and Mitsubishi UFJ Financial Group Inc.’s Bank of Tokyo-Mitsubishi UFJ unit were among the banks named by MAS in the statement today.
“The punishment meted out will provide a clear signal that manipulation and other forms of financial shenanigans, riggings and violations of the law will not be tolerated in a well-respected global financial center,” Joseph Cherian, director of the Centre of Asset Management Research & Investments at the National University of Singapore’s Business School, said by telephone today.
To contact the reporters on this story: Andrea Tan in Singapore at atan17@bloomberg.net; Sanat Vallikappen in Singapore at vallikappen@bloomberg.net
To contact the editors responsible for this story: Douglas Wong at dwong19@bloomberg.net; Chitra Somayaji at csomayaji@bloomberg.net
- wong chee tat :)
Singapore FHM model caught in leaked nude photo scandal
- Yahoo! Newsroom/(Screengrab from internet) - Singapore FHM Models 2012 winner Jamie Ang caught in leaked nude photo scandal.
Naked photos of Singapore FHM Models 2012 winner Jamie Ang, many with sexually suggestive poses, are going viral on the Net.
Ang is seen fully naked and sexually provocative in the leaked pictures, even posing with a peeled banana in some.
At least 50 nude photos of the former Miss Commonwealth Singapore have been exposed on several local online forums and blogs since early April, but the pictures were quickly taken down as some of sites claimed they were threatened by legal action.
However, the photos continued to be circulated through private messaging on online forums.
Then, early this month, the 22-year-old’s pictures started to gain attention from netizens again. One of the sites that host nude photos of Ang said it recently received the bulk of the leaked photos of Ang. It is unclear who is the source of the leak, but a post on one of the forums mentioned that the images were obtained from a local adult forum.
Several of the photos appear to be of a personal nature as they were grainy and possibly taken on a smartphone. The rest appear to be taken professionally with the photographer's name on the corner of the images.
Ang is seen fully naked and sexually provocative in the leaked pictures, even posing with a peeled banana in some.
At least 50 nude photos of the former Miss Commonwealth Singapore have been exposed on several local online forums and blogs since early April, but the pictures were quickly taken down as some of sites claimed they were threatened by legal action.
However, the photos continued to be circulated through private messaging on online forums.
Then, early this month, the 22-year-old’s pictures started to gain attention from netizens again. One of the sites that host nude photos of Ang said it recently received the bulk of the leaked photos of Ang. It is unclear who is the source of the leak, but a post on one of the forums mentioned that the images were obtained from a local adult forum.
Several of the photos appear to be of a personal nature as they were grainy and possibly taken on a smartphone. The rest appear to be taken professionally with the photographer's name on the corner of the images.
Some of Ang's photos appear to be of a personal nature while others appears to be professionally taken. (Screengrab …Responding to media queries from Yahoo! Singapore, a FHM Singapore spokesperson confirmed that Ang was the winner of FHM Models 2012 and as far as the publication knows, “the nude photos were taken prior to her joining the competition".
Ang was featured as FHM Singapore’s cover girl in August 2012 with a 6-pager exclusive interview for winning the FHM Models 2012.
Interestingly, on her Model Mayhem biography page, Ang mentions that she does not do nude shoots.
- wong chee tat :)
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