Biggest Swiss Bank Fined for Manipulating Interest Rates
UBS will be fined $1.5 billion for its role in this summer's London Interbank Offered Rate scandal.
We wrote this summer about the rigging of LIBOR, the interest rate benchmark to rule them all. It affected rates on everything from mortgages to credit cards and many other loans, and investigations have found several banks were doing it for a while. Businessweek explains what’s happening to one of the culprits…
Fines from the U.S. Commodity Futures Trading Commission and the U.S. Department of Justice total $1.2 billion, UBS said in a statement today. It will pay 160 million pounds ($260 million) to the U.K. Financial Services Authority, the largest- ever fine imposed by the regulator, and disgorge 59 million francs in estimated profits to the Swiss Financial Market Supervisory Authority.
You can read about the bank’s offenses in detail at the link. But for comparison purposes, this is three times what Barclays, a big British bank, was fined for its role.
Subscribe by email
Like this article? Sign up for our email updates and we’ll send you a regular digest of our newest stories, full of money saving tips and advice, free! We’ll also email you a PDF of Stacy Johnson’s ’205 Ways to Save Money’ as soon as you’ve subscribed. It’s full of great tips that’ll help you save a ton of extra cash. It doesn’t cost a dime, so why wait? Click here to sign up now.
