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UBS to pay more in rate manipulation settlement

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UBS admitted to rigging the Libor rate and was already fined back in 2012. Keystone

The leading Swiss bank UBS has agreed to pay an additional $68 million (CHF67.3 million) to settle an investigation into the bank's role in manipulating an interest rate in the United States.

Justice officials said the bank made millions in unjust gains from fraudulent conduct while government entities investing with the bank were left in the dark.

It is the latest of several bank settlements of charges related to the manipulation of the London Interbank Offered Rate, better known as Libor.

UBS has paid more than $1.5 billion in fines and penalties to US and European authorities for its manipulation of the Libor.

The investigation involved attorneys general of 40 US states. They previously reached Libor-related settlements with the British multinational investment bank, Barclays, as well as Deutsche Bank and CitiBank, collecting nearly $500 million.

Libor is set every day and is a widely quoted interest rate used to price a myriad of financial instruments. The interest rates on credit cards and mortgages typically use Libor as a benchmark.

“Our multistate investigation will continue in order to hold accountable those other banks which harmed consumers in Connecticut and across the country,” Connecticut Attorney General George Jepsen is quoted as saying.

The plot by multiple banks came to light in 2012 shaking trust in the global financial system, according to experts. It is considered on the biggest scams in the history of the markets. 

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