We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

UBS fined £940mn over Libor rigging


Fine split between US, UK and Swiss regulators

Article comments

Swiss bank UBS has been fined a total of £940 million (US$1.5 billion) by US, UK and Swiss regulators for its part in the attempt to manipulate the Libor lending rate.

UBS also admitted to manipulating Euribor and Tibor; the equivalent interest rate benchmarks for lending set in the Eurozone and Japan.

Giving details on Wednesday, the Swiss bank said it has agreed to pay £740 million (US$1.2 billion) in fines to the US Department of Justice (DoJ) and the Commodities Futures Trading Commission, £160 million to the UK Financial Services Authority and £40 million (CHF59 million) to Switzerland's Financial Market Supervisory Authority.

According to the FSA, misconduct at UBS was extensive and widespread and involved at least 45 executives. It would have fined UBS the sum of £200 million, but gave the bank a 20 percent discount because it co-operated. Nonetheless, the £160 million fine was still the largest ever imposed by the UK financial watchdog.  

"At least 2,000 requests for inappropriate submissions were documented – an unquantifiable number of oral requests, which by their nature would not be documented, were also made. Manipulation was also discussed in internal open chat forums and group emails, and was widely known," the FSA said.

The UK watchdog added manipulation was so common that every single Libor submission by UBS between 2005 and 2010 may have been rigged.

In a statement, UBS chief executive Sergio Ermotti, said, "We deeply regret this inappropriate and unethical behaviour. No amount of profit is more important than the reputation of this firm, and we are committed to doing business with integrity."

Apart from Barclays and UBS, around a dozen major banks are presently under investigation in various global jurisdictions over the Libor scandal.

Share:

Recommended Articles

Comments

UBS fined £940mn over Libor rigging
Governance

What’s going to kill your company?

What’s going to kill your company?

The role of the CFO and the board in strategic risk governancemore ..


Microsoft removes Bing image widget after Getty lawsuit

The company is being sued by Getty Images for copyright infringementmore ..

Apple loses bid for sales ban in Samsung patent case

Apple failed to show that it suffered enough harm as a result of Samsung's infringementmore ..

Steatite wins MoJ's electronic tagging contract worth £76.5m

Serco and G4S lost the contract after overcharging scandalmore ..

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *