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.
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swissinfo.ch with AP and Keystone-SDA-ATS/ug
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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Trader guilty of Libor rate rigging
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Hayes, who was employed at UBS in Tokyo, before taking a job briefly at Citigroup, was convicted by Britain’s Serious Fraud Office (SFO) on eight counts of conspiracy for manipulating the rate. A judge sentenced him to 14 years in jail. During the trial, Hayes was portrayed as the ringleader of an international team of…
Financial regulator to inform those on ‘watch list’
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The existence of the FINMA watch list was revealed during a Federal Court hearing concerning a former executive of the Swiss bank UBS. Suspecting that he could be on the list after UBS was fined for manipulating Libor benchmark interest rates in 2012, the former executive went through the courts to gain access to his…
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According to the announcement on Wednesday, different investigations found that the following banks took part: Credit Suisse, UBS, Deutsche Bank, US financial institutions Citigroup and JPMorgan, British banks Barclays and the Royal Bank of Scotlan, and the French Société Générale. The total fines add up to CHF99 million ($96 million). The investigation began in 2012,…
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