UBS 'close to settling Libor fine'

4 December 2012

UBS could agree Libor settlements with regulators on both sides of the Atlantic before the end of the year, it has emerged.

Along with a number of other major banks, the Swiss financier has been under investigation for the manipulation of this key interbank interest rate in recent months and insiders have told the New York Times that fines are close to being finalized.

Officials briefed on the matter explained that UBS is expected to pay in excess of $450 million to bodies in both the UK and the US on the basis that some of its employees reported incorrect rates to boost the bank's profit level.

"American authorities are hoping to complete a deal with UBS by the middle of the month," the sources added.

Should the ongoing discussions stall, it is thought that regulators will file a lawsuit against the bank and if the lender is penalized by more than $450 million, this would exceed the fine issued to Barclays for Libor rigging earlier in the year.

By Claire Archer

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