Libor Fixing Costs Mount

UBS, Switzerland’s biggest bank, may be fined more than $1 billion by U.S. and U.K. regulators for trying to rig global interest rates, more than double the amount levied against Barclays Plc, according to a person familiar with the probe.

The fines from the U.S. Commodity Futures Trading Commission, the U.K. Financial Services Authority and the U.S. Department of Justice may be announced as early as next week, said the person, who asked not to be identified because the information isn’t public. The final figures are still being negotiated and could change, three people familiar with the probes said.

Global authorities are investigating claims that more than a dozen banks altered submissions used to set benchmarks such as the London interbank offered rate to profit from bets on interest-rate derivatives or make the lenders’ finances appear healthier. Barclays, the U.K.’s second-biggest bank, agreed to pay 290 million pounds ($467.9 million) in June to resolve the U.S. and U.K. Libor probes.

UBS spokeswoman Karina Byrne in New York declined to comment on the potential penalties.

Officials from the CFTC, FSA, Swiss regulator Finma and the DOJ also declined to comment.

The fine will likely be the largest against any bank levied by the U.S. and U.K. authorities in the Libor probes, the person said. The CFTC’s portion of the fine against UBS may exceed the entire fine against Barclays. The fine, which was expected to be announced this week, has been delayed as the DOJ works out a deferred prosecution agreement, one of the people said.
Bloomberg

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell