UBS AG Bank of Switzerland agreed to pay 203 million US dollars for manipulating LIBOR
The bank took this decision after the Justice Department tore up a nonprosecution agreement reached between them in 2012.
Switzerland bank UBS AG on 20 May 2015 agreed to pay 203 million US dollars in fine and for a three-year term of probation for manipulating London Interbank offered Rate (LIBOR).
The bank has reached a settlement in this regard with the Anti Trust Division of the US Justice Department.
The bank took this decision after the Justice Department tore up a non-prosecution agreement (NPA) reached between them in 2012.
As part of its prior settlement in 2012, the bank’s Japanese subsidiary pleaded guilty to a criminal charge of wire fraud in the United States, but the parent company was allowed to enter a NPA in return for extending cooperation in the investigation.
About LIBOR Scandal
LIBOR is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. Every day, it is calculated on the basis of interest rates paid by major 16 banks on their borrowings.
As per the investigations, it was revealed that the UBS AG in collusion with other banks submitted inflated or deflated interest rates to the BBA Libor (administering authority of LIBOR) in order to rig the benchmark rate and subsequently benefit from the transactions.
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