Libor Fixing Scandal: UBS Close to $450m Settlement with UK and US Regulators
By Lianna Brinded | December 3, 2012 7:56 PM EST
UBS is close to settling with US and UK regulators over allegations of London Interbank Offered Rate (Libor) manipulation, which could result in the bank paying a similar amount that Barclays stumped up in June this year.
According to a report in the New York Times, the Swiss bank is in advanced settlement talks with the Commodity Futures Trading Commission (CFTC), the US Department of Justice (DoJ) and Britain's Financial Services Authority (FSA), after a lengthy investigation that accused some of its employees of submitting false Libor rates.
If UBS were to settle soon, it would follow Barclays which settled for a record fine with the same authorities for £290m ($450m) for manipulating Libor benchmark interest rates, which resulted in the resignation of a number of senior executives, including its chairman, CEO and COO.
While Barclays have already settled, the bank, as well as dozens of others are still under investigation in other jurisdictions.
UBS representatives told IBTimes UK, "we have been cooperating fully with the regulatory and enforcement authorities in connection with these investigations." However, representatives would not confirm the report.
In August this year, UBS confirmed that its head of swap trading, Jay V. Merchant, left the bank amid reports that he is under investigation for the possible manipulation of Libor.
Meanwhile, over the last couple of years, Japanese regulators have suspended some banks' operations, such as Citigroup and UBS, after the Securities and Exchange Surveillance Commission (SESC) found that some staff attempted to manipulate Tokyo interbank offered rates (Tibor).
In UBS' penultimate quarterly report, the Swiss bank said it had reached immunity deals with the Department of Justice and regulators in Switzerland and Canada, giving it protection against enforcement action in relation to certain transactions and submissions for Yen Libor and Euroyen Tibor.
"Several government agencies, including the SEC, the US Commodity Futures Trading Commission, the DOJ and the FSA, are conducting investigations regarding submissions with respect to British Bankers' Association LIBOR rates," says part of the statement. "We understand that the investigations focus on whether there were improper attempts by UBS (among others), either acting on our own or together with others, to manipulate LIBOR rates at certain times. In addition, the Swiss Competition Commission (WEKO) has commenced an investigation of numerous banks and financial intermediaries concerning possible collusion relating to LIBOR and TIBOR reference rates and certain derivatives transactions."
"UBS has been granted conditional leniency or conditional immunity from authorities in certain jurisdictions, including the Antitrust Division of the DOJ and WEKO, in connection with potential antitrust or competition law violations related to submissions for Yen LIBOR and Euroyen TIBOR.
WEKO has also granted UBS conditional immunity in connection with potential competition law violations related to submissions for Swiss franc LIBOR and certain transactions related to Swiss franc LIBOR. The Canadian Competition Bureau has granted UBS conditional immunity in connection with potential competition law violations related to submissions for Yen LIBOR. As a result of these conditional grants, we will not be subject to prosecutions, fines or other sanctions for antitrust or competition law violations in the jurisdictions where we have conditional immunity or leniency in connection with the matters we reported to those authorities, subject to our continuing cooperation," adds the statement.
To contact the editor, e-mail:
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
Join the Conversation
- China Military PLA Drills Affect Flights, Hundreds Cancelled
- Malaysia Airlines MH17: EU Feared Won't Ever Enforce Sanctions on Russia; All Talk, No Force
- U.S. Flights to Israel Now Lifted, Flights To and From Tel Aviv Resume – FAA
- Reserve Bank of New Zealand Raises Interest Rates Due to 'Unsustainable' Kiwi
- Embattled Malaysia Airlines Could Run Out of Cash 2015; Diverts Plane Over Another War Zone After MH17 Crash
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales
- Sony Xperia M2 vs. Moto G – Specifications, Features and Price Showdown