UBS 'set for $1bn fine this week'

17 December 2012

UBS is likely to receive a fine of around $1 billion for its role in the Libor manipulation scandal this week, it has emerged today (17 December).

Sources with knowledge of the matter have informed Reuters that regulators on both sides of the Atlantic are on the verge of imposing penalties on the major Swiss bank, meaning it will become the second lender to be hit with a financial punishment for its role in the fiasco.

Earlier this year, Barclays received fines totalling some $450 million from bodies in the US and the UK for its part in the rigging of the key interbank lending rate, but it is thought UBS's penalty will be more than double this figure.

Indeed, the news source noted that Swiss newspaper Tages-Anzeiger believes the fine could be as high as $1.6 billion.

Peter Stenz, portfolio manager at investment and pensions firm Swisscanto, said such a punishment would be "a little bit astonishing".

By Asim Shah

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