UBS hit with $1.5bn fine for LIBOR rigging

UBS is to pay out $1.5bn in fines after it admitted its role in fixing the interbank lending rate.

The Swiss bank has agreed a settlement with UK, US and Swiss regulators for a total of £940m, following “extensive and widespread” moves to manipulate LIBOR and EURIBOR. Of this fine, £160m will be paid to the Financial Services Authority, the largest ever penalty it has imposed. Some $1.2bn (£740m) in combined fines will go to the US Department of Justice (DoJ) and the Commodities Futures Trading Commission, and CHF 59m (£40m) to the Swiiss Financial Market Supervisory Authority. UBS said it is likely to make a loss of CHF 2bn-2.5bn in the fourth quarter as a result of making prov...