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  • UBS has suspended several traders, including some of its most senior ones, amid an investigation into alleged collusion to influence the London Interbank Offered Rate and its equivalents in Europe and Asia.
  • BNP Paribas has slashed its bonus pool for 2011 by 50% after pretax profit at corporate and investment banking plunged 40% in the fourth quarter.
  • Defaults of loans in Spanish residential mortgage-backed securities inched up to 2.14% in December, up from 2.12% from the preceding month, according to Moody’s Investors Service.
  • Société Générale reduced risk-weighted assets in corporate and investment banking by 13% last year by dumping EUR16.1 billion ($21 billion) of legacy assets, including a EUR476 million ($620.7 million) write-down in the fourth quarter from positions on U.S. residential mortgage-backed collateralized debt obligations.
  • Tougher capital requirements are expected to drive up the use of contingent capital notes by Swiss banks, such as one offered by UBS, according to Fitch Ratings.
  • Deutsche Bank unit Ace Securities has been sued by Irish fund manager Phoenix Light for allegedly misrepresenting the underwriting standards it used to issue loans that were pooled into residential mortgage-backed securities.
  • U.S. Bankruptcy Judge James Peck of Manhattan has approved a deal in which JPMorgan Chase agreed to drop all but some $10 million of a $710 million claim against Lehman Brothers’ bankruptcy estate in exchange for $15 million in cash and the reinstatement of other claims against the collapsed bank.
  • Ulster Bank, the retail mortgage subsidiary of the Royal Bank of Scotland, has opted not to call the bonds from its Celtic residential mortgage-backed program.
  • Option adjustable rate mortgage-backed securities have become popular again after they were held up during the financial crisis as an example of what is wrong with mortgage practices.