After a widespread investigation UBS has been fined a total of US$1.5billion in 3 different countries.
For misconduct relating to the London Interbank Offered Rate (LIBOR) and the Euro Interbank Offered Rate (EURIBOR), UBS has agreed to pay a US $700 million civil monetary penalty to the U.S. Commodity Futures Trading Commission, cease and desist from further violations , and take specified steps to ensure the integrity and reliability of its LIBOR and other benchmark interest rate submissions and improve related internal controls.
UBS’s breaches encompassed a number of issues, involved a significant number of employees and occurred over a period of years in a number of countries.
In matters concerning the U.S. Justice Department, UBS Securities Japan Co., Ltd., agreed to plead guilty to a criminal charge of wire fraud, UBS AG agreed pursuant to a non-prosecution agreement to continue to cooperate with the Justice Department, and UBS AG and UBS Securities Japan Co., Ltd. agreed to make payments that when combined total $500 million.
In addition, the United Kingdom’s Financial Services Authority (“FSA”) issued a Final Notice regarding its enforcement action against UBS AG and has imposed a penalty of £160 million, the equivalent of $259.2 million, against the Bank; the Swiss Financial Market Authority (“FINMA”) issued an order resolving proceedings against UBS AG and requiring disgorgement of 59 million Swiss Francs, the equivalent of $64.3 million.
Related links
FSA UK notices
Wall Street Journal
Barclay’s Bank fine
