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UBS agrees $1.53bn settlement with market regulators over Libor manipulating case

Swiss lender UBS has agreed to pay CHF1.4bn ($1.53bn) in fines and disgorgement to the US, UK and Swiss authorities to settle the charges pertaining to Libor rate fixing scandal.

The board of directors of the bank has approved the settlement with the US Department of Justice (DoJ) and the US Commodity Futures Trading Commission (CFTC), pending commission approval.

The bank has also inked a settlement agreement with the UK Financial Services Authority (FSA) as well as the Swiss Financial Market Supervisory Authority (FINMA) in connection with their investigations of benchmark interest rates.

Out of total penalty CHF1.4bn ($1.53bn), the bank will reimburse £160m in fines to FSA; CHF59m as disgorgement of estimated profits to FINMA; and a total penalty of $1.2bn to US DoJ and CFTC.

UBS CEO Sergio Ermotti said, "We have cooperated fully with the authorities and taken decisive and appropriate actions to correct the issues and to strengthen our control processes and procedures. We deeply regret this inappropriate and unethical behavior."

The probe covered under the settlement includes certain benchmark interest rates such as Yen, GBP, CHF, EUR, USD, Euribor and Euroyen TIBOR.

As part of a proposed agreement with the US DoJ, UBS Securities Japan Co (UBSSJ) has agreed to enter a plea to one count of wire fraud pertaining to the interest rate manipulation.