UBS agrees to pay €1.1bn Libor-rigging penalty

Swiss bank UBS agreed today to pay £940m (€1.1bn) to regulators in the biggest penalty yet from the industry’s Libor-rigging scandal.

The settlement, which includes a record fine of £160m (€196.8m) from the UK’s Financial Services Authority, is far larger than the total of £290m (€356.7m) paid by Barclays for Libor manipulation this summer.

The Zurich-based bank, which has around 6,500 staff in London, has endured a turbulent year after the jailing of rogue trader Kweku Adoboli.

The FSA said the misconduct was ``extensive and widespread'' as UBS's traders routinely made requests to colleagues responsible for determining Libor and Euribor submissions in an effort to benefit their own trading positions.

It said that at least 45 individuals including traders, managers and senior managers were involved in, or aware of, the practice. The regulator recorded at least 2,000 requests for inappropriate submissions and said many more would have been made orally.

Tracey McDermott, FSA director of enforcement and financial crime, said: “They manipulated UBS’s submissions in order to benefit their own positions and to protect UBS’s reputation, showing a total disregard for the millions of market participants around the world who were also affected by Libor and Euribor.”

As well as the FSA, the US Department of Justice and UBS’s main Swiss supervisor were among those involved in today’s settlement.

Libor is the umbrella term for benchmark rates that underpin the terms of 500 trillion US dollars of contracts from mortgages to the cost of corporate lending.

The probe, which has embroiled about 20 financial institutions, has accelerated with the first arrests by the Serious Fraud Office taking place last week.

Taxpayer-backed Royal Bank of Scotland has previously said it hopes to settle any claims over Libor manipulation soon and warned that potential penalties could be significant.

More in this Section

Survey finds huge drop last year in firms leasing flexible office space in DublinSurvey finds huge drop last year in firms leasing flexible office space in Dublin

Business leaders warn of workers shortage in NI under new UK immigration rulesBusiness leaders warn of workers shortage in NI under new UK immigration rules

Investor BGF opens Cork office to target Munster firmsInvestor BGF opens Cork office to target Munster firms

Ryanair appeals jury’s decisionRyanair appeals jury’s decision


Lifestyle

Bonnie Ryan couldn’t be happier.On a roll: Why Bonnie Ryan couldn't be happier

From Ireland to America and fashion to homeswares, designer Helen James is developing interiors products for the high street with an emphasis on sustainability, beauty and function, writes Carol O’CallaghanConsider this: Meet Helen James

Laura Harding goes on location to see where the new adaptation of Jane Austen's Emma was shotBehind the Scenes: Getting the inside story on the movie Emma

More From The Irish Examiner