The US Justice Department is considering scrapping its agreement to not prosecute UBS for allegedly manipulating benchmark interest rates, Bloomberg has reported.
The move would be a first for the industry. Earlier this March, a justice department official said that these non-prosecution agreements could be withdrawn if banks continue their misconduct.
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UBS had inked a non-prosecution agreement (NPA) in 2012 to resolve allegations over rigging of Libor benchmark rates, and promised to not commit any wrongdoings for two years.
The agreement was recently extended for an additional year to 2015 end.
UBS is among the five banks about to reach settlements with US regulators over allegations of currency market manipulation.
The other four lenders are: Citigroup, JPMorgan Chase, Barclays and Royal Bank of Scotland Group, who are set to enter pleas related to antitrust violations.
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By GlobalDataUBS’s cooperation in the currency investigation could protect it from antitrust charges, but it still remains exposed to fraud charges.
