UBS Criminal Charge In Libor Settlement Breaks Taboo, Signals More Arrests Coming

MomT's picture

Huffington Post by Mark Gongloff Posted   |  Updated: 12/19/2012 11:58 am EST

Ubs Criminal Penalties Libor

Regulators forced Swiss bank UBS to cough up $1.5 billion to settle charges of rate manipulation

Even though it is not really surprising, the sheer scope and audacity of the market manipulation involved in the latest bank scandal still manages to inspire awe.

As was widely expected, regulators in the U.S., U.K. and Switzerland Wednesday morning announced they were forcing Swiss bank UBS to cough up $1.5 billion to settle charges that its traders manipulated the world's most important interest rates perpetually over a stretch of five years.

According to the regulators, at least 45 different managers and traders were involved in a scheme to manipulate key benchmark lending rates known as Libor and Euribor, which affect "hundreds of trillions of dollars of financial contracts around the world," notes David Enrich of the Wall Street Journal.

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Comments

Libor Scandal

Ra-Raela's picture

The question is, were is all of this money that is being charged this bank, going? All of these banks are being charged enormous amounts of money for their wrongdoing. But who gets all of this money?

Good question, it probably

will's picture

Good question, it probably goes right back to the banks. That "money" is little more than numbers in computers anyway.