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UBS faces $1 billion fine for Libor rigging -source

Dec 13 2012 Huw Jones, Reuters

Swiss bank UBS is expected to pay about $1 billion to settle charges of rigging the Libor interest rate benchmark, according to a person familiar with the situation, making it the second major bank to be officially ensnared by the global scandal. The announcement could come as early as Monday, this person said. Such a penalty, more than double the $450 million fine levied on British bank Barclays in June for related conduct, indicates the scope of the misconduct by UBS could dwarf that exposed by Barclays' settlement. Barclays in June admitted it improperly took trading positions into account when reporting interest rates used to calculate the Libor benchmark, touching off a firestorm that forced its chairman and chief executive to quit. The settlement also prompted a political and public backlash against standards in banking across Europe and the United States. The Libor benchmarks are used for trillions of dollars worth of loans around the world. Tiny

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