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SWISS BANKING GIANT UBS said today it has agreed to pay about $1.5 billion to British, US and Swiss regulators to settle allegations it manipulated LIBOR interest rates.
The bank said the settlement, equivalent to €1.2 billion, would likely push into a net loss of between 2.0 and 2.5 billion Swiss francs (€1.7- €2.1 billion) in the fourth quarter.
The LIBOR rate is a reference point for vast ranges of financial contracts around the world, and revelations that it had been rigged have damaged the reputation of the City of London financial centre.
“UBS agrees to pay approximately CHF 1.4 billion in fines and disgorgement to US, UK and Swiss authorities to resolve LIBOR-related investigations,” the statement said.
The bank, the biggest in Switzerland, will pay more three times the amount of the settlement reached in June with Britain’s Barclays, another one of the more than dozen banks investigated for trying to rig global interest rates.
As part of the one of the biggest fines ever slapped on a financial institution, the Swiss bank said it had agreed to pay £160 million in fines to the UK Financial Services Authority.
It will pay 59 million Swiss francs as disgorgement, or compensatory penalty, of estimated profits to the Swiss Financial Market Supervisory Authority (FINMA).
It also said it had agreed to payment schedules for a total of $1.2 billion to the US Department of Justice and the Commodity Futures Trading Commission (CFTC).
UBS was the first bank to reveal problems in the rate-setting process of the LIBOR, an acronym for London Interbank Offered Rate, which estimates the rates at which banks lend money to each other and also affects huge numbers of contracts around the world.
Other banks are also reportedly in advanced talks with regulators about settling allegations that they too manipulated their LIBOR information, including Royal Bank of Scotland and Deutsche Bank.
“During the course of these investigations, we discovered behavior of certain employees that is unacceptable,” UBS chief executive Sergio Ermotti said in the statement.
“Their misconduct does not reflect the values of UBS nor the high ethical standards to which we hold every employee.
Violations
FINMA said it had found that “UBS severely violated organisational and proper business conduct.”
It found that UBS traders made numerous requests to bank employees to make LIBOR submissions to benefit UBS’s trading position.
FINMA said most of the requests were made by a trader in Tokyo, who also contacted employees at other banks and independent brokers to try to influence their LIBOR submissions.
UBS said its Japanese subsidiary would plead guilty to a US criminal offence as part of the investigations.
“As part of a proposed agreement with the US Department of Justice, UBS Securities Japan Co. Ltd. (UBSSJ) has agreed to enter a plea to one count of wire fraud relating to the manipulation of certain benchmark interest rates, including Yen LIBOR,” it said.
FINMA also found that during the 2007-2008 financial crisis “UBS managers inappropriately gave guidance to those employees charged with submitting interest rates, the purpose being to positively influence the perception of UBS’s creditworthiness.”
The Swiss regulator said it found no indication that UBS top management was aware of the misconduct, but that “substantial failings” in the bank’s internal control processes “prevented the improper interference with interest rates from being discovered and the bank from reacting appropriately.”
‘Inappropriate and unethical’
UBS said that it had cooperated fully with authorities and had taken action to remedy the shortcomings.
“We deeply regret this inappropriate and unethical behavior,” Ermotti said.
“No amount of profit is more important than the reputation of this firm, and we are committed to doing business with integrity.”
UBS said it believes its fourth quarter net profit attributable to shareholders will show a loss “primarily as a result of provisions for litigation and regulatory matters.”
It estimated the net loss at 2.0 to 2.5 billion Swiss francs, with 2.1 billion in provisions for the LIBOR settlement plus claims related to sales of residential mortgage backed-securities (RMBS) and other matters.
The bank said it also expected to make restructuring charges of approximately 0.5 billion Swiss francs, and a charge of 0.4 billion to reevaluate the fair market value of financial liabilities.
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How come none of our well paid TDs in the Dail did not explore this option following the bank guarantee (ie hold a referendum and ask the people if they wanted to risk €60,000,000,000 on Anglo et al) – Keaveney needs to stop playing silly buggers – Colm either shut up or get up of your parliamentary posterior and set up your own party. We’ve all had enough talk and tapes this week.
A ‘lot of TDs’, including Mr Coveney, are also in for a shock when they find out the voters have moved on from the old right-wing Catholic conformity.
So he wants women to be forced to continue a pregnancy against thier will which the UN has said is torture?
I suppose the ripping apart, limb by limb of an innocent baby is not torture! Deluded pro aborts show their ugly side once again
Domhnall, that’s a ridiculous and immature comment on such a sensitive subject.
Can we deal with the facts here?
Ignore domhnall, he’s a youth defense shill. All they have is shock tactics and tantrum language.
Pro aborts gets me every time haha. It’s hard to believe that they (YD), are a serious group, when all they sound like are bullies in the playground.
I can’t wait to see their reaction when abortion will be legal!
Why are we still being subjected to the musings of Keaveney? He’s just another Independent TD now. I think there are two hotlines in the Journal office, one direct to Pearse Doherty and one straight to Keaveney.
‘I suppose the ripping apart, limb by limb of an innocent baby is not torture!’
Of course that’s torture. But nothing to do with abortion.
Keavney just relinquished his mandate, and left his electorate swinging in the wind. You can’t have it every way Colm! Tough decisions , jump ship!!! Pathetic !
Sure the reason he left the Labour Party was for the abortion legislation rather than cuts, sure he’s having talks with Ganly, he’s jumped ship to join right wing politics
I seriously doubt Ganley would let that muppet make coffee
“A new referendum removing suicide as a grounds for abortion would also have to include other issues, said Minister for Transport Leo Varadkar.
He said he did not believe it would be possible to vote a third time on the issue without asking questions on allowing terminations on the grounds of rape, alleged rape, incest, the health of the mother or in the case of a foetus incompatible with life.
“People who are pro-life in this House, or outside of this House, who are calling for referendums should be careful about what they wish for because they do not know, for example, how big a Pandora’s Box they may open.’”
I say let the people decide. But any referendum must be worded to suit the people NOT the Catholic church!!
“THE NEWLY-INDEPENDENT TD Colm Keaveney has claimed there are “a lot of people curious” about the possibility of invoking Article 27 of the Constitution and forcing a referendum on the Protection of Life during Pregnancy Bill.”
“A lot of people are curious” as to how a legislator i.e. YOU feels they can oppose legislating for two previous referenda and a supreme court decision. You are obliged to legislate in support of supreme court decisions. if you refuse to do your job, you should resign your seat.
I am kinda curious myself, let it go to a referendum and pass and see the next excuse that he comes up with.
He’ll claim that we can’t POSSIBLY be sure without four referendums. Maybe five.
I very respectfully suggest that Deputy Keaveney needs to stop now.
What? – censor him?
so much for ” freedom of speech”!
Nobody cares what Keaveney thinks.
I suppose mr keavney has to keep in the news somehow -
Why not take what’s on offer? This is the bare minimum! However, the fact that women will still have to go to England to abort foetuses that inevitably will not survive is a shocking disgrace. Lets face it, our legislators are, in the main,cowards and hypocrites.
“A new referendum removing suicide as a grounds for abortion would also have to include other issues, said Minister for Transport Leo Varadkar.
He said he did not believe it would be possible to vote a third time on the issue without asking questions on allowing terminations on the grounds of rape, alleged rape, incest, the health of the mother or in the case of a foetus incompatible with life.
“People who are pro-life in this House, or outside of this House, who are calling for referendums should be careful about what they wish for because they do not know, for example, how big a Pandora’s Box they may open.’”
I say have a referendum and let the people decide once and for all. But the referendum MUST be worded to suit the people NOT the Catholic church or the extreme right wing politicians!!
I am glad to seeAt last the right minded TDs and senators working together for the common good
Most people know FinnGael and labour are only puppets for Europe
The economy was destroyed and our TD’s didn’t say a word about it. Now they’re all up in arms because women might be given a tiny bit more say in how to run their lives. The country is a farce.
Go back to mass Patrick.
Yes, Rodrigo. And you are one of the reasons our economy is in tatters..
Funny, never once in the reasons given for the recession in our economy did anyone ever tell me that it was Rodrigo Detriano’s fault in any way.
Can everyone agree to stop paying attention to Deputy Keavney, please?
The only thing Colm cares about is Colm. Abortion, the economy, democracy…they’re just a means for Colm to increase his profile. The sooner people stop reacting to him, the sooner we’ll forget him, then he can be turfed out at the next election, and go back to being an ineffective union rep.
They’ll get another ten articles out of this interview yet.
I’m fascinated to know where this fear and mistrust of women stems from. Are the likes of Keaveney so scared that the moment free, safe, abortion becomes legal in Ireland that we’ll all be queueing round the block for one like they’re Michael Buble tickets.
Is it so necessary for religious groups and politicians to actively campaign for the continued control of women’s movements, rights and health in the 21st century?
There will NEVER be a situation where a man will be told he has to wait for treatment until his medical condition threatens his life as opposed to his health. So why is it okay for these men to dictate these restrictions to women?
The 8th amendment hasn’t saved lives. It’s killed women. We need rid of it now.
TDs who vote for this “pro-abortion” legislation are behaving like “turkeys voting for Christmas”"
Kill the Bill not the chid!
Hiding behind the whip won’t help TDs in the next election!
Where is Fine Gael’s pre-election undertaking today.
“Fine Gael in Government will not legislate for abortion”! Or will it break its promise?
Does Fine Gael intend to break its pre-election promise?
How can any voter vote for Fine Gael in the future?
Fine Gael has deceived the Irish People!
Enda please tell the truth:-
How many lives will your Bill save?
How many lives will your Bill kill?
Yawn.
Women have been killed as a result of being denied treatment under the 8th amendment.
Would you stand for being told that your tumour/heart disease/diabetes isn’t going to be treated until it’s life threatening? Why do you insist women do?
A really excellent point.
Colm Keaveney mentioned on one of the papers today, that he is concerned about the lack of time limit, in the proposed legislation.
A lot of people share that concern.
@ Zoe – if you have a time limit and the mother’s life is in danger after the limit do you deny an abortion?
I have no problem with termination, where the mothers life is in danger.
For example in a life saving medical emergency.
No one disputes that.
@ Zoe – some people do dispute it and state abortion should not be allowed even then.
This Bill does not go far enough – no provision for fatal abnormalities, that a doctor can choose not to perform the procedure is appalling (what if a woman’s life is so in danger and a doctor opts out through conscience and another can’t be found quickly enough? Also the legal part – could this mean 14 years for taking the RU486?
More freedom is needed.
Funny Zoe, you say you don’t dispute it – yet that’s all they are legislating for and you are quite vocal in your opposition..
Yes, Zoe. However, it is very, very difficult in clinical scenarios to make the health/life distinction.
The late Mrs. Savitaa Halappanavar would probably be alive now if an abortion on health grounds had been permissible in this State.
It is important to remember this very salient point when discussing abortion.
have your say