Swiss regulator punishes UBS for Libor rigging

ZURICH Wed Dec 19, 2012 1:06am EST

ZURICH Dec 19 (Reuters) - Switzerland's financial regulator said UBS seriously violated financial market legislation by manipulating Libor rates, and ordered the bank to disgorge 59 million Swiss francs ($64.6 million) in profits to the Swiss Confederation.

FINMA said most of the requests to influence the benchmark interest rate submissions were made by one UBS trader who worked in Tokyo between 2006 and 2009.

"Substantial failings in the system and control processes for Libor submissions at UBS prevented the improper interference with interest rates from being discovered and the bank from reacting appropriately," FINMA said in a statement.