UBS sued by two traders fired in Singapore over rate scandal
February 28, 2013 4:21 PM EST
Two former UBS AG traders in Singapore are suing the bank for wrongful dismissal, saying the bank fired them to lessen its role in the alleged manipulation of reference rates used to price currency derivatives known as non-deliverable forwards.
In separate lawsuits filed at Singapore's High Court on Wednesday, Mukesh Kumar Chhaganlal and Prashan Parmeshwar Sunny Miripuri said UBS
UBS was fined $1.5 billion in December last year for its role in a multi-year scheme to manipulate the London interbank offered rate (Libor) and other benchmark interest rates.
"It appears to the plaintiff that his summary termination was effected in order to mitigate the defendant's (UBS) role in the growing scandal related to alleged fixing of reference rates in the Singapore market," papers in Kumar's case say.
Kumar, who was the former co-head of Macro Trading, Emerging Markets Asia, and Miripuri, who ran UBS's South East Asian Desk for NDF trading, were both fired on February 7 having been suspended since last year.
Both men said in the papers that UBS never gave them full details of why they were being suspended and subsequently fired.
"They were not presented with any evidence showing they fixed rates," said Daniel Chia, a director at Stamford Law Corp., which is representing the traders. "UBS cannot pinpoint what they did wrong."
A spokeswoman for UBS in Singapore said the bank is declining to comment on the case as the investigations into the alleged manipulation of reference rates are still ongoing.
Kumar did not comment beyond what he said in the court documents when Reuters spoke to him via telephone.
Miripuri could not be immediately reached for comment.
The Monetary Authority of Singapore ordered banks that help set local interbank lending rates and NDF rates to review the fixing process last year as U.S. and British regulators cracked down on manipulation of Libor, a benchmark used to set interest rates for around $600 trillion worth of securities.
NDFs are derivatives that let companies and investors hedge or speculate on emerging market currencies when exchange controls make it difficult for foreigners to participate directly in the spot market.
(Reporting by Rachel Armstrong; Editing by Ryan Woo)
Most Popular Slideshows
- Gennady Golovkin Next Fight Options: Canelo Alvarez, Miguel Cotto Or Julio Cesar Chavez Jr.
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery
- Boy Stoned To Death For Alleged Rape, Victim Receives Dowry From Militants
- ASUS Releases A Teaser Indicating The Arrival of New Zenfone and ZenWatch On October 28
- Russia is Creating Underwater Combat Robots to Protect its Arctic Territories
- iOS 8 Jailbreak Release Date is Doomed as Team Evad3rs Opts Out, Pangu Hits Snag – Report
- Google Nexus 6 vs. iPhone 5S: 4 Important Things to Consider Before Switching to Android Lollipop
- Three Dual SIM Samsung Galaxy Note 4 Duos Variants Comes To China