Unnamed sources say Swiss bank will settle charges relating to interest rate manipulation later this week
UBS will be hit with a fine of more than €750m this week to settle charges of rigging Libor interest rates, according to Reuters.
The bank was in the news only last month after UK-based trader Kweku Adoboli was convicted over a €1.87bn rogue trading fraud. This time sources close to Reuters say UBS’s name will be further tarnished with its €750m-plus fine for Libor rigging.
Citing unnamed sources, Swiss newspaper Tages-Anzeiger said the penalty may be as much as €1.3bn, and that the Swiss bank will admit 36 of its traders that manipulated the Japanese Libor between 2005 and 2010.
If the €1.3bn fee cited by Tages-Anzeiger is realised, it will be more than three times the €357m paid by Barclays in June for Libor manipulation.
Any settlement is likely to fuel public anger at the banking industry which has been plagued by scandal throughout 2012.
UBS was unable to comment on the matter.