Swiss Bank Reportedly Near Settlement over Libor Rate-Fixing
Deal worth $450 million
Swiss bank UBS is reportedly near a settlement with American and British regulators over interest-rate rigging. Such a deal would make UBS the second financial institution this year to admit to manipulating the London interbank offered rate, Libor.
UBS is expected to pay $450 million and admit that some employees reported false rates to increase profit, DealBook reports. That's identical to the fine that British bank Barclays agreed to pay. The fines, among the largest levied in this type of investigation, show the zeal of the regulators pursuing the Libor manipulation. Sensibly so, if you consider Libor's use. The rate, a measure of how much financial institutions charge other banks for loans, determines trillions of dollars in mortgages, credit card expenses and student loans.