UBS subpoenaed by SEC

INVESTORS ditched UBS shares yesterday after the bank’s annual report said that it is being investigated for possible manipulation of data submitted to the British Bankers’ Association (BBA).

The bank’s stock closed down 2.34 per cent at SwFr16.7 after the shock revelation that it has been subpoenaed by the US Securities and Exchange Commission (SEC) and the US Commity Futures Trading Commission regarding “whether there were improper attempts by UBS, either acting on its own or together with others, to manipulate Libor rates at certain times”.

It also said it was being investigated by the Japan Financial Supervisory Agency “concerning similar matters”.

The bank’s annual report also revealed that Castern Kengeter, head of its investment banking division, was its highest-paid board member, pocketing a total of SwFr9.32m (£6.32m) in total pay last year, down from SwFr13.19m in 2009. Oswald Grübel, group chief executive, gave up his bonus to take home a salary of SwFr3.03m, but overall board pay jumped by SwFr22.3m to an average of SwFr7m for each of its 13 members.