- 8 updates
Swiss bank UBS has agreed to pay £940 million in penalties over fixing the Libor interbank lending interest rate. The penalty was agreed with US, UK and Swiss regulators.
ITV News Economics Editor Richard Edgar reports:
Two former UBS traders have been charged by United States prosecutors in connection with efforts to manipulate Libor interest rates.
The move comes after the Swiss bank was fined £940 million by regulators for "extensive and widespread" attempts to rig interbank lending rates.
Former traders Tom Hayes and Roger Darin have been charged with conspiracy to manipulate the interbank lending rate. Mr Hayes has also been charged with wire fraud and an antitrust violation.
The US will seek the extradition of two former senior UBS traders who face criminal charges as part of a probe into Libor rate-fixing, a top official has said.
"We're going to seek their extradition and our investigation continues," Lanny Breuer, assistant attorney general for the criminal division at the US Justice Department said.
The criminal complaints are against former traders Tom Hayes and Roger Darin.
Swiss bank UBS has been fined £160 million by the Financial Services Authority, the largest fine ever levied by the City regulator.
The FSA said "at least 2,000 requests for inappropriate submissions" to the rates were documented, and at least 45 individuals, "including traders, managers and senior managers were involved, or aware of the practice of attempt to influence submissions."
The bank was awarded a 20% discount on their fine for early payment.
The Libor rate is used to set the interest rates on trillions of dollars in contracts around the world, including mortgages and credit cards.
- £160 million of the UBS fine will go to the UK's Financial Services Authority
- The FSA says at least 45 people were involved in the rigging
- The remainder of the fine will be divided up between the US Department of Justice, Commodity Futures Trading Commission and Swiss regulator Finma
The UBS penalty is the second-largest fine paid by a bank and comes a week after HSBC agreed to pay the biggest of £1.1 billion to settle an investigation in the US into laundering money for drug cartels.
UBS has agreed to pay £940 million in penalties to settle the Libor interest rate manipulation case.
The penalty was agreed with US, UK and Swiss regulators.