UBS will pay a fine of 545 million dollars by manipulating interest rates and exchange rates
The UBS bank will plead guilty and pay a fine 545 million dollars by manipulating interest and exchange market. This figure rises to more than 3 billion dollars making the bank with market manipulation.
The UBS Group will pay a fine of 545 million dollars (about 485.5 million euros) by manipulation of interest rates and exchange market, putting an end in two major legal obstacles of the bank.
The main unit of the group, UBS AG, will plead guilty to fraud by manipulating the benchmark interest rates and pay 203 million dollars in fines after to have violated an agreement that would have allowed him to avoid lawsuits, according to a UBS statement, cited by Bloomberg.
As part of a parallel process for handling the forex market, UBS said it will pay over 342 . million to the US Federal Reserve, which regulates foreign banks, and implement corrective measures
Four other global banks should announce today the sanctions imposed under investigation by manipulating the currency market – Citigroup, JPMorgan Chase, Barclays and the Royal Bank of Scotland.
According to Bloomberg, UBS’s guilty plea raises the prospect of the bank having to ask for permission to US regulators to keep running on certain lines of business, including management of investment funds and pension in the United States.
The UBS secured, this Wednesday, which will not be new provisions and that sanctions will not have impact on earnings in the second quarter.
“The conduct of a small number of employees was unacceptable and we have taken appropriate disciplinary action”, said the CEO Sergio Ermotti and Chairman Axel Weber on jointly issued by UBS statement.
The fines announced Wednesday by UBS elevate making bank by market manipulation for over 3 billion dollars. This figure includes 1.7 billion dollars if Libor and $ 800 million paid by UBS last year to regulators in Switzerland, the US and UK by manipulation of exchange rates.
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