Thursday, April 24, 2014





UBS to pay $1.5B to settle interest rate case


February 19. 2013 10:45PM
Story Tools
PrintPrint | E-MailEMail | SaveSave | Hear Generate QR Code QR
Send to Kindle


(AP) Swiss banking giant UBS AG said Wednesday it has admitted to fraud and agreed to pay some $1.5 billion to U.S., British and Swiss authorities in a probe into the rigging of global benchmark interest rates.


The settlement caps a tough year for Switzerland's biggest bank, which is one of several leading banks that has been under investigation over allegations of manipulating the benchmark LIBOR interest rate, short for London interbank offered rate. It is used to set the interest rates on trillions of dollars in contracts around the world, including mortgages and credit cards.


The rate is a self-policing system and relies on information that global banks submit to a British banking authority. American and British regulators have already fined Britain's Barclays $453 million for submitting false information between 2005 and 2009 to keep the interest rate low.


In a proposed agreement with the U.S. Department of Justice, UBS Securities Japan Co. Ltd. has agreed to enter a plea to one count of wire fraud relating to the manipulation of LIBOR rates for the Japanese yen.


The statement from the UBS board of directors said some of its personnel had engaged in efforts to manipulate submissions for certain benchmark rates to benefit trading positions.


The bank also said that some of its employees had colluded with employees at other banks and cash brokers to influence certain benchmark rates to benefit their trading positions or had given inappropriate directions to UBS submitters that were in part motivated by a desire to avoid unfair and negative market and media perceptions during the financial crisis.


Associated Press


Comments
comments powered by Disqus Commenting Guidelines
Poll
Mortgage Minute


Search for New & Used Cars

Make 
Model
 
Used New All
 

Search Times Leader Classifieds to find just the home you want!

Search Times Leader Classifieds to find just what you need!

Search Pet Classifieds
Dogs Cats Other Animals



Social Media/RSS
Times Leader on Twitter
Times Leader on Youtube
Times Leader on Google+
The Times Leader on Tumblr
The Times Leader on Pinterest
Times Leader RSS Feeds