UBS close to $US1bn Libor settlement with US and UK authorities on Wednesday, December 19th 2012 ... http://goingglobaleastmeetswest.blogspot.com/2012/12/ubs-close-to-us1bn-libor-settlement.html Watch Here
: http://www.youtube.com/watch?feature=player_embedded&v=GfLBy6dpRj8 "Morgan Stanley estimated that 11 global banks linked to the Libor scandal could face $14 billion in regulatory and legal settlement costs through 2014"
December 14, 2012 UBS close to $US1bn Libor settlement with US and UK authorities
UBS is close to finalising a settlement with US and British authorities in which the giant Swiss bank is likely to pay more than $US1 billion ($950 million) to resolve allegations that it attempted to manipulate benchmark interest rates, according to people briefed on the negotiations.
UBS and the authorities are currently on track to announce the settlement early next week, these people said. They cautioned that the discussions are still in progress and that the parties previously have been near deals in the past, only to see them unravel.
Assuming the deal gets finalised, UBS will become the second bank, following Barclays, to settle allegations that it attempted to manipulate benchmarks including the London interbank offered rate, or Libor, and the euro interbank offered rate, or Euribor. Together they serve as the basis for interest rates on hundreds of trillions of dollars of loans, derivatives and other financial contracts worldwide.
The settlement would conclude long-running investigations of UBS being conducted by the US Commodity Futures Trading Commission, Department of Justice and the UK Financial Services Authority, as well as Swiss regulators. A penalty of $US1 billion or more against UBS would be more than double the roughly $US450 million that Barclays paid to settle similar allegations in late June. The Swiss regulator can't levy fines but can impose other sanctions. http://www.theaustralian.com.au/business/wall-street-journal/ubs-close-to-agreeing-1bn-libor-settlement-with-us-and-uk-authorities/story-fnay3ubk-1226536545259
UBS Libor Settlement Nears, With Bank Expected To Pay More Than $450 Million To U.S. And U.K.
* UBS says is cooperating fully with investigations
* UK rival Barclays fined $450 million in June
* Other banks also looking to settle probe
ZURICH, Swiss bank UBS AG is expected to pay more than $450 million to U.S. and British authorities to settle claims some of its employees submitted false Libor rates, the New York Times reported.
In June, British bank Barclays Plc was fined $453 million for manipulating Libor benchmark interest rates, becoming the first bank to settle in the ongoing probe, prompting the resignation of its chairman and chief executive.
UBS was the first bank globally to report suspected rate rigging, and has said it has received conditional immunity from some authorities for cooperating in their probes.
A UBS spokeswoman told Reuters that the bank was in the midst of discussions with authorities in the United States and Britain in connection with Libor investigations and has been cooperating fully with the regulatory and enforcement authorities, but gave no further details.
Christopher Hamilton, spokesman for Britain's Financial Services Authority, declined to comment beyond confirming the already established fact that the FSA is investigating UBS.
The Commodity Futures Trading Commission and the U.S. Justice Department, investigating the Libor matter in the United States, could not immediately be reached for comment.
Other banks are also anxious to draw a line under the probe, which is well into its second year. British bank RBS said last month it hopes to reach a settlement on its part in the rate-rigging scandal - likely to result in fines for the bank - and expects to start talks soon.
Morgan Stanley estimated that 11 global banks linked to the Libor scandal could face $14 billion in regulatory and legal settlement costs through 2014.
The reliability of the London interbank offered rate, or Libor, has been cast into doubt by the rate manipulation accusations. Libor is intended to measure the rate at which banks lend to one another and is used as a benchmark for $300 trillion of contracts and loans across the world.
Switzerland is also investigating 12 U.S., European and Japanese banks suspected of conspiring to manipulate interbank lending rates. They include Credit Suisse, Deutsche Bank, HSBC Holdings and RBS.
"In Switzerland we are still investigating the case. We are in contact with other authorities," said Competition Commission official Olivier Schaller, but provided no further details.
FINMA spokesman Tobias Lux said the Swiss regulator was making ongoing efforts to clarify the issue, but declined to comment further.