UBS Japan To Pay $100m In Rate-Rigging Case
The Japanese subsidiary of Swiss banking giant UBS is to pay a $100m fine under a larger global crackdown over the Libor rate-rigging scandal.
The penalty, handed down by a US judge, is part of a $1.5bn (£940m) settlement agreed by the parent company UBS last December with Swiss, British and American regulators.
UBS Securities Japan Co. Ltd, which also admitted criminal conduct, was sentenced in New York.
The US justice department said the Japan scheme dated from September 2006.
It said a senior trader at UBS' Tokyo office "orchestrated a sustained, wide-ranging and systemic scheme" to move Yen Libor in a direction favourable to the trader's positions.
Libor, which stands for the London Interbank Offered Rate, is a leading benchmark used in financial transactions worldwide.
The US Justice Department said UBS Japan made false and misleading Libor submissions to the British Bankers Association, which publishes Libor.
And it caused other market participants to make false Libor submissions, the Justice Department said.
The $1.5bn settlement with regulators that was unveiled last December related to manipulation of Yen Libor and euroyen contracts.
At the time of the settlement, the fines amounted to the second biggest penalty paid by a bank in the wake of the ($1.92bn) £1.2bn money laundering settlement announced by HSBC in the US.
The Financial Services Authority (FSA) in the UK said the case was "all the more serious" as UBS had attempted to manipulate Libor submissions at other banks, making corrupt payments to reward brokers for their efforts.
The FSA's report revealed incriminating conversations between UBS traders and brokers, saying they would "play the rules" and "return the favour".
UBS said last December that around 40 people had left or been asked to leave the bank as a result of the Libor investigation.