UBS executive ‘at rigging meeting’

a FOrMer senior executive of UBS who is now in charge of the German stock market attended meetings where the rigging of interest rates was discussed, a court was told.

Tom Hayes, 35, a former employee of UBS and Citigroup, who is accused of fraudulently rigging the london Interbank Offered rate, or libor, made the claims in evidence given to Serious Fraud Office investigators.

The jury at Southwark Crown Court was told Hayes had said: ‘The awareness of libor manipulation at UBS went pretty high up.’

He said Carsten Kengeter, a former co-chief executive of investment banking at UBS and now chief executive of europe’s biggest stock exchange, Deutsche Borse, attended a meeting where libor manipulation may have been discussed.

Hayes said in evidence to investigators: ‘The... manipulation came from right on high with messages coming down from group treasury and from the board. Senior management were keen to use libor to effectively lie about their cost of borrowing by 50-100 (basis) points and portray a sense of strength.’

Hayes had also admitted to investigators that he was dishonest.

Officers asked him: ‘Do you admit you acted dishonestly in the manipulation and attempted manipulation of submissions being made for libor?’

The jury was told Hayes replied: ‘Yes, I admit I was dishonest and was dishonest within an environment that was prevalent among all the banks.’

He made the alleged admission as part of a plea agreement which could have reduced his sentence. But the court was told he later changed his mind and would not be pleading guilty to the allegations.

Hayes, of Fleet, Hampshire, denies eight counts of conspiracy to defraud covering a period from 2006 to 2010.

The case continues.