Will UBS and Citigroup be punished in Japan?

Their employees allegedly asked bankers to change rates they submit for setting Tibor to gain an advantage.

According to Bloomberg, the local brokerage units of UBS and Citigroup may be penalized by Japan’s Financial Services Agency for attempting to influence the Tokyo interbank offered rate.

Bloomberg noted that apart from the Tibor inquiry, Citigroup is facing potential penalties in Japan for compliance violations at its local banking unit.

There is no evidence that the Tibor rate was manipulated following the actions, an SESC official said at a news conference today, according to Bloomberg. 

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