A US District court has ordered UBS Securities Japan to pay a US$100 million fine as a part of its role in the manipulation of the benchmark interest rate Libor.
A US District court has ordered UBS Securities Japan to pay a US$100 million fine as a part of its role in the manipulation of the benchmark interest rate Libor.
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The fine is part of a US$1.5 billion settlement agreed by parent UBS last December with Swiss, British and US regulators.
The agreement is part of a global resolution of criminal, civil and regulatory actions brought by prosecutors against Zurich-based UBS in connection with alleged rate manipulation.
The penalty is part of the global settlement, and was outlined in a joint sentencing recommendation on 12 September by the Justice Department and UBS Securities Japan.
US prosecutors accused UBS Securities Japan of scheming from November 2006 to August 2009 to manipulate yen Libor to benefit a senior trader’s trading positions.
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By GlobalDataThe Justice Department added that UBS Japan has made false and misleading Libor submissions to the British Bankers Association (BBS), which publishes Libor, and caused other market participants to make false Libor submissions to the BBS.
US attorney general Eric Holder said: "This action, and the resulting sentence, prove that no individual or firm is above the law — no matter what, the Department of Justice will continue to stand vigilant against corporations or individuals who threaten the integrity of our financial markets, undermine the stability of our economy, or jeopardize the well-being of our citizens."
