UBS, Switzerland’s biggest bank, may be fined more than $1 billion by U.S. and U.K. regulators for trying to rig global interest rates, more than double the amount levied against Barclays Plc, according to a person familiar with the probe.
The fines from the U.S. Commodity Futures Trading Commission, the U.K. Financial Services Authority and the U.S. Department of Justice may be announced as early as next week, said the person, who asked not to be identified because the information isn’t public. The final figures are still being negotiated and could change, three people familiar with the probes said.
Global authorities are investigating claims that more than a dozen banks altered submissions used to set benchmarks such as the London interbank offered rate to profit from bets on interest-rate derivatives or make the lenders’ finances appear healthier. Barclays, the U.K.’s second-biggest bank, agreed to pay 290 million pounds ($467.9 million) in June to resolve the U.S. and U.K. Libor probes.
UBS spokeswoman Karina Byrne in New York declined to comment on the potential penalties.
Officials from the CFTC, FSA, Swiss regulator Finma and the DOJ also declined to comment.
The fine will likely be the largest against any bank levied by the U.S. and U.K. authorities in the Libor probes, the person said. The CFTC’s portion of the fine against UBS may exceed the entire fine against Barclays. The fine, which was expected to be announced this week, has been delayed as the DOJ works out a deferred prosecution agreement, one of the people said.
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