UBS Admits Rigging Rates in ‘Epic’ Plot
This confirms my suspicion that much more than previously known about the markets is rigged. Over the years my market philosophy has heavily depended on confirmation by insiders for this very reason.
By DAVID ENRICH and JEAN EAGLESHAM
UBS will pay $1.5 billion to settle accusations by regulators that the bank tried to rig benchmark Libor rates. Arrests are expected to follow. WSJ’s David Enrich reports. Photo: Reuters
U.S., U.K. and Swiss authorities alleged a vast conspiracy led by UBS AG UBSN.VX -0.33% to rig interest rates tied to trillions of dollars in loans and other financial products, indicating the practice was far more pervasive than previously known.
UBS agreed to pay about $1.5 billion to settle charges against the Swiss bank, and a unit in Japan where much of the wrongdoing occurred pleaded guilty to criminal fraud. U.S. prosecutors also filed criminal conspiracy charges against two former UBS traders allegedly at the heart of the scheme.
via UBS to Pay $1.5 Billion to Settle Libor Charges – WSJ.com.