Reuters: Regulatory News: UPDATE 1-UBS becomes latest bank to quit Euribor rates panel

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UPDATE 1-UBS becomes latest bank to quit Euribor rates panel Mar 19th 2013, 11:18 Tue Mar 19, 2013 7:18am EDT * Rabobank, Citi among banks to quit Euribor panel * UBS also pulled out of Australian rate panel * Move follows UBS's investment banking scaleback ZURICH, March 19 (Reuters) - UBS said it would pull out of money market rate Euribor, one of the most prominent banks to do so after a global benchmark rate-setting scandal, in a move that renews questions about the rate's future. "We have decided to withdraw from the Euribor panel and to focus on our core funding markets Swiss franc and U.S. dollar," a UBS spokesman said, adding the decision was linked to an October decision to shut down vast parts of its investment bank. Euribor and its larger counterpart Libor are Europe's key gauges of how much banks pay to borrow from peers and underpin swathes of financial products from Spanish mortgages to derivatives contracts in London. Running parallel to the probe into Libor setting, there is an official investigation into whether banks manipulated Euribor rates for their advantage. The Swiss bank paid a $1.5 billion fine in December over its role in a global scheme to manipulate rates. UBS, which also exited an Australian rates panel earlier this month, follows Rabobank, which said in January it would quit Euribor. A spokesman for UBS declined to comment on whether it would exit other rate panels. Citi and Germany's Dekabank quit or scaled back their Euribor involvement last year, thwarting an attempt by the European Central Bank to encourage more banks to join up. Other banks such as Credit Suisse, UBS's hometown rival, have stopped contributing to sub-components of Euribor such as Eurepo, a benchmark rate for short-term secured borrowing, or repo trading. Credit Suisse, which has termed its involvement in the various Libor probes "not material", stopped contributing to Eurepo earlier this month, according to the Euribor-EBF group which runs it. Link this Share this Digg this Email Reprints

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