UBS Tells Three FX Traders To Take Five

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...while the firm tries to figure out if the trio engaged in any currency rigging.

UBS AG suspended foreign-exchange traders in the U.S., Singapore and Switzerland as its investigation into the alleged rigging of currency markets widened, according to a person with knowledge of the matter. They include Onur Sert, an emerging markets spot trader based in New York, and at least three more worldwide, said the person, who asked not to be identified because of the probe. Sert and Dominik von Arx, a spokesman for UBS in London, both declined to comment on the move. Switzerland’s largest bank opened a review of its currency operations last year after Bloomberg News reported in June that traders in the industry had colluded to rig the WM/Reuters rates, a benchmark used by investors and companies around the world.

UBS Said to Suspend FX Traders in New York, Zurich and Singapore [Bloomberg]

Related: UBS Tried, And Failed, To Rig Hong Kong Interest Rate

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It's Possible A Bunch Of Employees At UBS Deutschland Helped Clients Evade German Taxes

The bank has ran its own internal investigation and found no evidence of wrongdoing but prosecutors are still going to take a look-see themselves. The investigation, being conducted by economic-crimes prosecutors in Mannheim, was started in March against unnamed employees after a tax inquiry in the southwestern state of Baden Wuerttemberg identified suspicious transfers of funds from Germany to Switzerland, allegedly executed by a German taxpayer with the assistance of the Frankfurt-based office of UBS Deutschland AG...In May, prosecutors seized more than 100,000 computer files and other records during a search of the bank's Frankfurt office, Mr. Lintz said. Tax investigators are assessing this material to identify evidence that bank officials acted as accessories to tax evasion, he said. In its statement, UBS Deutschland said that "an internal investigation into the specific allegations has not identified any evidence of misbehavior by UBS Deutschland AG." It said it is cooperating with the criminal investigation. Several investigations of UBS clients in Germany are under way by local prosecutors independent of the Mannheim investigation, Mr. Lintz said. He declined to say how many clients are under investigation. A report in the Thursday edition of German newspaper Stuttgarter Nachrichten said thousands of bank clients are under investigation. Mr. Lintz declined to confirm that figure. Germany Probes UBS Staff on Tax-Evasion Allegations [WSJ]