Libor case: UBS nears $450 mn settlement with US, UK
Libor reflects the cost of borrowing unsecured funds in the London interbank market.
Zurich/London: Swiss bank UBS AG is nearing a deal to settle claims some of its staff manipulated interest rates and could reach agreement with US and British authorities by the end of the year, a news agency has reported.
UBS is expected to pay more than USD 450 million to settle claims some of its employees’ submitted false Libor rates, a newspaper had reported earlier.
Libor is based on rate submissions from a relatively small and select panel of major banks, including Barclays, and is calculated and published daily for several different currencies by the British Banker's Association (BBA).
Generally, it reflects the cost of borrowing unsecured funds in the London interbank market.
Britain's Barclays Plc was fined USD 453 million in June for manipulating Libor benchmark interest rates, and remains the only bank to settle in the investigation, which led to the resignation of the bank's chairman and chief executive.
U.S. and UK regulators, which released their settlements with Barclays at the same time, are working together on the UBS investigation and could release an agreement by the end of the year, although the timing could slip into next year.
With Agency Inputs