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Swiss bank UBS fined for libor rate fraud

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Swiss bank UBS fined for libor rate fraud

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Swiss bank UBS has agreed to pay a fine of 1.5 billion US dollars after admitting libor fraud.

The penalty, equivalent to more than 1.1 billion euros, will be paid to US, UK and Swiss regulators.

The bank’s chief executive Sergio Ermotti has told staff it is too early to say how and if customers were affected by the fraud.

Global markets did not react to the fine, as it was widely expected UBS would settle the ongoing investigation.

The penalty is three times what British bank Barclays had to pay for manipulating libor rates. Barclays was fined 450 million US dollars in June.

Used in hundreds of trillions of euros worth of financial contracts, ranging from credit cards to complicated derivatives, and called the world’s most important financial instrument, manipulation of the libor rates has come under intense scrutiny.