UBS agrees to Libor fines totalling $1.5bn

19 December 2012

UBS has agreed to pay fines totalling CHF 1.4 billion ($1.5 billion) for its role in the Libor manipulation scandal.

The major Swiss bank revealed this morning (19 December) that it has authorized settlements with bodies including the US Department of Justice (DoJ), the Commodity Futures Trading Commission (CFTC) the Swiss Financial Market Supervisory Authority and the UK Financial Services Authority (FSA).

Under the terms of UBS's deals, it will pay a total of $1.2 billion to the DoJ and CFTC, as well as $260 million to the FSA.

In a statement, the financier indicated it had been penalized for a number of reasons, including the fact some of its personnel colluded with professionals at other banks to rig the rate in order to benefit their trading position.

Sergio Ermotti, chief executive officer of UBS, commented: "We have co-operated fully with the authorities and taken decisive and appropriate actions to correct the issues and to strengthen our control processes and procedures."

By Asim Shah

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